What is a 'Module' referring to in the context of an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below.
- MODULE SELECTION AND INITIAL MODULE FEE . Franchisee wishes to add the services and offer the Module(s) through the Extreme Art Business in accordance with the terms of this Module Amendment. The Module(s) that Franchisee desires to add to the Extreme Art Business are as follows (check all that apply):
Craft Academy ($15,000 initial module fee)
Kidscientific ($20,000 initial module fee)
Little Hands Discovery ($10,000 initial module fee)
Franchisee agrees and acknowledges that it will not receive any territorial rights whatsoever in connection with the Module(s).
Franchisee will maintain detailed records of all cost information, sales information, and other sales data associated with the Module(s) that it operates ("Module Data").
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, a 'Module' refers to additional service offerings that a franchisee can add to their Extreme Art Studio business. These modules are added through a 'Module Amendment' to the original franchise agreement.
Specifically, the FDD mentions three optional modules: Craft Academy (with an initial module fee of $15,000), Kidscientific (with an initial module fee of $20,000), and Little Hands Discovery (with an initial module fee of $10,000). A franchisee wishing to incorporate one or more of these modules into their business must pay the corresponding initial module fee, which is non-refundable.
It's important to note that Extreme Art Studio franchisees do not receive exclusive territorial rights for these modules. This means that other franchisees, including those operating under affiliated brands like Kidcreate Studio, may offer identical curriculum and services within the same territory. The franchisor also retains the right to offer, franchise, and license these modules to others. Franchisees are required to maintain detailed records of cost and sales information related to the modules they operate and must provide this data to the franchisor upon request. The franchisor owns this data and can use it as they choose.