When is the Local Advertising Payment due for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising Payment | The difference between the amount you spent on local advertising each month and your required local advertising expenditure ($500 per month per Extreme Art Studio Business) | Payable after receipt of invoice | If you fail to meet your required local advertising requirement on local advertising, you must pay us the difference between the amount you spent and the required advertising expenditure, which will be contributed to the Brand Fund or to us. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Local Advertising Payment is due after the franchisee receives an invoice. This payment is required if the franchisee spends less than the required local advertising expenditure of $500 per month per Extreme Art Studio Business. The payment covers the difference between the amount spent and the required $500.
This policy ensures that all Extreme Art Studio locations contribute to local advertising efforts, even if they don't directly spend the required amount themselves. The funds collected from franchisees who under spend on local advertising are then contributed to the Brand Fund or directly to Extreme Art Studio.
For a prospective franchisee, this means carefully tracking local advertising expenses and ensuring they meet the $500 minimum requirement to avoid additional payments. If a franchisee chooses not to spend the full $500 on local advertising, they should budget for the additional payment due upon receiving the invoice from Extreme Art Studio. This system allows Extreme Art Studio to maintain a consistent level of local advertising across all franchise locations, supporting brand awareness and customer acquisition.