What initial inventory is required for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Advise you on necessary pre-opening procedures and assist you with inventory ordering of products, equipment and supplies through our affiliate or other suppliers, as applicable, which are necessary for commencement of operations, and provide implementation services for you in connection with the CR Software and the DB Software (See Franchise Agreement – Sections 2.4 and 3.6).
-
- Provide you with specifications for all initial and replacement furniture, fixtures, equipment, signs, inventory and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing that are required to operate your Extreme Art Studio Business. We do not deliver or assist with the installation of any fixtures, furnishings, equipment, signs or other supplies. (See Franchise Agreement – Sections 2.2 and 8.4).
You must begin offering services from the Studio within 12 months of signing the Franchise Agreement. Factors that affect this length of time include securing any necessary financing; selecting the Studio site; negotiating the lease; obtaining necessary permits; completing leasehold improvements; delivery of equipment, inventory and supplies; completing our initial training program; and hiring and training employees, If you fail to open your Extreme Art Studio Business within 12 months of signing the Franchise Agreement or Extreme Art Rider, we may terminate your Franchise Agreement (without providing you a refund) or you will be required to pay us an "Opening Extension Fee" of $1,000 per month until you open or until the Franchise Agreement is terminated.
You may not open your Extreme Art Studio Business until: (1) we notify you in writing that all of your pre-opening obligations have been fulfilled; (2) you have completed the initial training program to our satisfaction and have commenced the on-site assistance program; (3) all amounts due to us have been paid; (4) we have been furnished with copies of all insurance policies and certificates required by the Franchise Agreement, or other documentation of insurance coverage and payment of premiums that we request; (5) you notify us that all approvals and conditions set forth in the Franchise Agreement have been met; (6) you have received all required permits and licenses; and (7) you have ordered, received and installed your equipment, supplies, inventory and computer system.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchisor will advise franchisees on inventory ordering of products, equipment, and supplies necessary for commencement of operations. Extreme Art Studio will provide specifications for all initial inventory and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing that are required to operate your Extreme Art Studio Business. However, Extreme Art Studio does not deliver or assist with the installation of any fixtures, furnishings, equipment, signs or other supplies.
Before opening, franchisees must ensure they have ordered, received, and installed their equipment, supplies, inventory, and computer system. The franchisee is responsible for the costs associated with obtaining the initial inventory.
While the FDD states that Extreme Art Studio will advise on and provide specifications for the initial inventory, it does not specify the exact items or quantities required, nor does it provide an estimated cost for the initial inventory. A prospective franchisee should speak with the franchisor directly to obtain a comprehensive list of required initial inventory and associated costs to accurately assess the initial investment.