What is the initial franchise fee for a Standard 3 Franchise for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 5: INITIAL FEES]
| Franchise Type | Number of Extreme Art Studio Businesses | Initial Franchise Fee |
|---|---|---|
| Single Extreme Art Studio Business | 1 | $45,000 |
| Standard 2 Franchise | 2 | $80,000 |
| Standard 3 Franchise | 3 | $110,000 |
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the initial franchise fee for a Standard 3 Franchise is $110,000. This fee grants the franchisee the right to open three Extreme Art Studio businesses. The initial franchise fee is payable when the Franchise Agreement is signed.
It is important to note that this fee is generally non-refundable, although veterans of the United States armed services will receive a 10% discount on the initial franchise fee. This discount can significantly reduce the upfront investment for eligible veterans. The FDD states that during the last fiscal year, which ended December 31, 2023, Extreme Art Studio did not collect any Initial Franchise Fees.
In addition to the initial franchise fee, franchisees should be aware of other potential costs, such as the Technology Fee of $400 per month, implementation fees for DB Software ($1,500) and CR Software ($500) for each Extreme Art Studio Business, and the cost of opening inventory which ranges from $4,500 to $5,500. There is also a potential Opening Extension Fee of $1,000 per month if the Extreme Art Business does not open within 15 months of the Franchise Agreement's effective date.