Will interest earned on Brand Fund Contributions be used by Extreme Art Studio?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, interest earned on Brand Fund Contributions will be used to pay costs before using the Brand Fund's other assets. The Brand Fund is used for marketing, developing, and promoting the Extreme Art Studio system, marks, and businesses.

This means that any interest accrued from the Brand Fund contributions is not retained by Extreme Art Studio as profit. Instead, it is allocated to cover the expenses associated with managing and administering the Brand Fund. This includes salaries and benefits of personnel, administrative costs, travel expenses, meeting costs, and overhead related to Brand Fund business.

For a prospective Extreme Art Studio franchisee, this indicates that the Brand Fund is managed in a way that prioritizes its use for the benefit of the franchise system. By using interest earned to offset costs, more of the principal contributions can be directed towards marketing and promotional activities. However, Extreme Art Studio does not have any fiduciary obligation for administering the Brand Fund.