Are the initial module fees for Extreme Art Studio refundable?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
$10,000 | If you choose to purchase the Modules, you will be required to pay the initial fees for each Extreme Art Business you wish to use the Module curriculum and sign the Module Amendment attached to this Franchise Disclosure Document as Exhibit H-9. Kidcreate Franchises may also offer the Modules. The Modules fees are uniform, earned by us when paid, and are not refundable under any circumstances. If you choose to purchase the Modules, you must pay us a monthly module technology fee of $250 ("Module Technology Fee") beginning the first day of the second month after you sign the Franchise Agreement. The Module Technology Fee is uniform and non-refundable under any circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the initial module fees are not refundable under any circumstances. If a franchisee chooses to purchase any of the optional curriculum modules, they must pay the initial fee for each Extreme Art Business they wish to use the module curriculum.
The initial fees for the modules vary depending on the specific module selected. The Craft Academy module has an initial fee of $15,000, the Kidscientific module has an initial fee of $20,000, and the Little Hands Discovery module has an initial fee of $10,000. These fees are earned by Extreme Art Studio when paid and are explicitly stated as non-refundable.
In addition to the initial module fees, franchisees who purchase modules must also pay a monthly module technology fee of $250, starting the first day of the second month after signing the Franchise Agreement. This monthly technology fee is also non-refundable under any circumstances. Therefore, a prospective franchisee should carefully consider the potential benefits of the modules before purchasing them, as the initial fees and ongoing technology fees are non-refundable, regardless of whether the franchisee is able to successfully implement the module curriculum in their business.