What 'METHOD OF PAYMENT' is required by the Extreme Art Studio Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
rt Studio Business under this Franchise Agreement and immediately upon opening each subsequent Extreme Art Studio Business under a Standard Franchise (if applicable).
- 3.2.2 For purposes of this Franchise Agreement, "Gross Sales" means all revenue that you receive from operating the Franchised Business (including any modules), including, but not limited to, all amounts or other consideration that you receive, directly or indirectly, at or away
from the Extreme Art Studio Business, and in the form of cash, check, credit and debit card, barter exchange, trade credit, or other credit transactions, and including all proceeds from any business interruption insurance. For example, Gross Sales includes, without limitation, the following:
- (a) all monies you receive from customers, including, but not limited to, monies received from the sale of products and services;
- (b) the amount of gift card redemptions;
- (c) the proceeds of any business loss or interruption insurance or similar insurance; and
- (d) any other revenue you derive.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchise agreement specifies acceptable forms of payment for Gross Sales. Gross Sales include all revenue a franchisee receives from operating their Extreme Art Studio business. This encompasses all amounts received directly or indirectly, whether at or away from the studio.
Acceptable methods of payment include cash, check, credit and debit card, barter exchange, trade credit, or other credit transactions. This broad definition ensures that all forms of revenue are included when calculating royalties and other fees owed to Extreme Art Studio.
Extreme Art Studio also provides guidance and system standards for franchisees. These standards include policies regarding credit and debit cards, vendors for electronic payments (such as Apple Pay and Google Wallet), and other payment systems. Franchisees must comply with the Payment Card Industry Data Security Standards, as revised by the PCI Security Standards Council. This ensures secure and consistent payment processing across all franchise locations.