Is the Module Technology Fee for an Extreme Art Studio franchise refundable under any circumstances?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
curriculum using the same names as the Module(s) that Franchisee offers and that Franchisee may face competition from such parties. Franchisee agrees that the presence of Kidcreate franchisees and other parties operating under brands other than Extreme Art are free to offer the Module(s) in Franchisee's Territory and that doing so shall not be considered a violation of the Franchise Agreement. Franchisee agrees that it will not raise any claim
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Module Technology Fee is not refundable under any circumstances. This fee is an additional monthly charge of $250 that franchisees pay to Extreme Art Studio for each module they add to their business.
This non-refundable policy means that once a franchisee commits to a module and begins paying the Module Technology Fee, they cannot get that money back, regardless of whether they find the module unsuccessful or decide to discontinue it. This is a notable financial commitment that prospective franchisees should carefully consider.
Franchisees should evaluate the potential benefits and risks of adding modules to their Extreme Art Studio business, understanding that the Module Technology Fee is a recurring, non-refundable expense. This policy is clearly outlined in the franchise agreement, ensuring that franchisees are aware of this financial obligation before entering into the agreement.