When is the Module Technology Fee due for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | Then-current fee (currently $400 per month) for the first Extreme Art Studio Business and the discounted rate for each additional Extreme Art Studio Business (currently $300 per month per additional Extreme Art Studio Business) | The first payment is due on the 1st day of the second month after signing the Franchise Agreement. Thereafter, monthly within five days of the end of the calendar month | For use of our online systems, website, applications, email, data sharing, integration and maintenance of DB Software, learning management software, search engine optimization for lead generation, and other Internet-related functions. We reserve the right to increase or decrease this fee, upon 30 days' written notice, in the event we offer updated or additional software or technology for use in the Extreme Art Studio Business or in the event of increases from third party suppliers. |
| Module Technology Fee | $250 per month per Module | Same as Technology Fee | You will pay this fee for each additional Module that you offer in your Extreme Art |
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 Module Technology Fee is $250 per month per Module. The due date for this fee is the same as the Technology Fee. The first payment is due on the 1st day of the second month after signing the Franchise Agreement. Thereafter, payments are due monthly within five days of the end of the calendar month.
This means that if a franchisee signs the Franchise Agreement in January, the first Module Technology Fee payment would be due on March 1st. Subsequent payments would then be due each month, within five days of the end of that month. For example, the payment for March would be due by April 5th.
The Module Technology Fee is charged for each additional module that the franchisee offers in their Extreme Art Studio business. It's important for prospective franchisees to factor this monthly fee into their operating budget, especially if they plan to offer multiple modules. Franchisees should also be aware that Extreme Art Studio may implement updated or additional software or technology for use in the Extreme Art Studio Business, potentially impacting the Technology Fee and Module Technology Fee.