When is the monthly CR Software Fee reevaluated for an Extreme Art Studio Business?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
the CR Software ($500). You will be responsible for the monthly fees to license the CR Software. Currently, those fees range from $5 to $535 per month. The monthly CR Software Fee will be reevaluated at the end of each calend
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the monthly CR Software Fee is reevaluated at the end of each calendar year. This reevaluation is based on the franchisee's sales volume.
For a prospective franchisee, this means the monthly cost of the CR Software, which currently ranges from $5 to $535 per month, could change annually depending on the performance of their Extreme Art Studio Business. If the franchisee's sales volume increases, the fee could potentially increase as well. Conversely, if sales volume decreases, the fee could decrease.
It is important for potential Extreme Art Studio franchisees to factor in this variable cost when projecting their operating expenses. Understanding how sales volume impacts the CR Software Fee will allow for more accurate financial planning and budgeting. Franchisees should aim to understand the specific volume tiers and associated fee adjustments to effectively manage this aspect of their business.