When does the monthly Technology Fee of $400 begin for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ology Fee*
You must pay us a monthly technology fee of $400 ("Technology Fee") beginning the first day of the second month after you sign the Franchise Agreement. The Technology Fee is uniform and nonr
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees must pay a monthly Technology Fee of $400. This Technology Fee commences on the first day of the second month after the Franchise Agreement is signed. This fee is uniform and nonrefundable.
This means that if you sign the Franchise Agreement on, for example, January 15th, the Technology Fee payments would begin on March 1st. This fee is in addition to other fees detailed in the FDD, such as the Initial Franchise Fee and potential module technology fees.
Franchisees should factor this recurring monthly cost into their financial projections and business plan. Understanding when these fees begin is crucial for managing cash flow during the initial stages of operating an Extreme Art Studio franchise.