When are Local and Regional Advertising Cooperative fees 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 and Regional Advertising Cooperatives(3) | Established by cooperative members, between 0.5% and 1% of Gross Sales | Same as Royalty (or as we designate) | We currently do not have a cooperative but reserve the right to require one to be established in the future. Each Extreme Art Studio Business we own that exists within the cooperative's area will contribute to the cooperative on the same basis as franchisees. We anticipate that each Extreme Art franchisee and each Extreme Art Studio Business that we own will have one vote for each Extreme Art operated in the designated market. Item 11 contains more information about advertising cooperatives. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, if a local or regional advertising cooperative is established, the due date for contributions is the same as the royalty fee or as otherwise designated by Extreme Art Studio. The contribution amount will be determined by the members of the cooperative and will be between 0.5% and 1% of gross sales.
Currently, Extreme Art Studio does not have a cooperative established, but they reserve the right to require one in the future. Each Extreme Art Studio Business that Extreme Art Studio owns within the cooperative's area will contribute to the cooperative on the same basis as franchisees. Each Extreme Art franchisee and each Extreme Art Studio Business that Extreme Art Studio owns will have one vote for each Extreme Art operated in the designated market.
For a prospective franchisee, this means that if a cooperative is established in their region, they will be required to contribute between 0.5% and 1% of their gross sales to the cooperative. The exact due date will align with royalty payments or as specified by Extreme Art Studio. Franchisees should stay informed about any potential establishment of advertising cooperatives in their area and understand the financial implications of contributing to such cooperatives.