How are the Marketing Fees for an Extreme Art Studio franchise paid?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
lectronic funds transfer ("EFT"), or other means approved by us. All Royalty payments to us are fully earned when paid and are nonrefundable under any circumstances.
- 3.3 MARKETING FEES. You agree to pay us a Brand Fund Contribution (as both terms are defined in Section 9.3) and, if established, a Local Advertising Cooperative (as defined in Section 9.4) contribution (collectively, the "Marketing Fees") for each of your Extreme Art Studio Businesses. The Marketing Fees are due and payable in the same manner as the Royalty. If you use marketing materials that we have not approved in accordance with Section 9.2.3, we may charge you a fee of $500 per occurrence.
- 3.4 TECHNOLOGY FEES.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees are required to pay Marketing Fees for each of their Extreme Art Studio Businesses. These Marketing Fees consist of a Brand Fund Contribution and, if established, a Local Advertising Cooperative contribution. The method of payment for these Marketing Fees mirrors that of the Royalty fees.
The Royalty fees, and therefore the Marketing Fees, must be paid via electronic funds transfer (EFT) or another method approved by Extreme Art Studio. This requirement ensures a consistent and trackable payment process.
It is important for prospective franchisees to understand that all Royalty and Marketing Fee payments are considered fully earned by Extreme Art Studio upon receipt and are nonrefundable under any circumstances. This means that once a payment is made, it cannot be recovered, regardless of any subsequent issues or changes in the franchisee's business situation.