When is the initial franchise fee due for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Business Licenses | $50 | $300 | As Incurred | As Incurred | Third Parties |
| and Permits(5) | |||||
| Professional Fees(6) | $1,000 | $2,500 | As Incurred | As Incurred | Attorney, Accountant |
| Signage(7) | $2,500 | $12,000 | As Incurred | As Incurred | Approved Suppliers |
| Computers & | $1,000 | $2,000 | As Incurred | As Incurred | Approved |
| Hardware(8) | Suppliers | ||||
| DB Software Implementation Fee(9) | $1,500 | $1,500 | Lump Sum | Upon signing Franchise Agreement | Us |
| CR Software Implementation Fee(9) | $500 | $500 | Lump Sum | Upon signing Franchise Agreement | Us |
| Grand Opening | $5,000 | $10,000 | As Incurred | As Incurred | Approved |
| Promotion(10) | Suppliers | ||||
| Uniforms(11) | $100 | $200 | As Incurred | As Incurred | Us or Approved Suppliers |
| Initial Training | $2,000 | $3,000 | As Incurred | As Incurred | Airline, Hotel, |
| Expenses(12) | Restaurants, etc. | ||||
| Technology Fees | $500 | $1,500 | As Incurred | As Incurred | Us |
| (13) | |||||
| CR Software Fee for Three Months(13) | $105 | $1,605 | As Incurred | As Incurred | Approved Suppliers |
| DB Software Fee for Three Months(13) | $675 | $900 | As Incurred | As Incurred | Approved Suppliers |
| Rent, Security | $5,000 | $15,000 | As Incurred | As Incurred | Third Parties |
| Deposit, Utility | |||||
| Deposit(14) | |||||
| Optional | $0 | $47,250 | Lump sum | Upon signing Franchise | Us |
| Modules(15) | Agreement | ||||
| Additional Funds – | $9,000 | $15,000 | As Incurred | As Incurred | Landlord, Utility |
| Three Months(16) | Companies | ||||
| Construction Management Fee (17) | $0 | $22,000 | As Incurred | As Incurred | Approved Suppliers |
| Leasehold Improvements(18) | $25,000 | $125,000 | As Incurred | As Incurred | Landlord, Contractors, Other Suppliers |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the timing of the initial franchise fee payment depends on the specific fee. The DB Software Implementation Fee of $1,500 and the CR Software Implementation Fee of $500 are due upon signing the Franchise Agreement. An additional payment for Optional Modules is also due upon signing the Franchise Agreement; this can range from $0 to $47,250.
Other expenses, such as those for business licenses and permits, professional fees, signage, computers and hardware, grand opening promotion, uniforms, initial training expenses, technology fees, CR software fees, DB software fees, rent, security deposit, utility deposit, additional funds, construction management fees, and leasehold improvements are due as incurred.
Prospective franchisees should carefully review the payment schedules for all fees and understand the financial obligations associated with opening an Extreme Art Studio franchise. It is important to budget accordingly and ensure sufficient funds are available when each payment is due.