What is the non-refundable deposit required when submitting a transfer application for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $10,000 per Extreme Art Studio Business, plus cost of any applicable broker fees and training | $1,000 non refundable deposit at time of transfer application submittal and remaining balance when you execute the transfer documents | Payable only in connection with the transfer of each of your Extreme Art Studio Businesses, a transfer of ownership of your legal entity, or the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, a franchisee must pay a $1,000 non-refundable deposit when submitting a transfer application. The remaining balance of the transfer fee is due when the franchisee executes the transfer documents.
The total transfer fee is $10,000 per Extreme Art Studio Business, in addition to the cost of any applicable broker fees and training. This fee is payable only when transferring an Extreme Art Studio Business, transferring ownership of the legal entity, or transferring the Franchise Agreement.
It is important to note that the initial $1,000 deposit is non-refundable, regardless of whether the transfer is ultimately completed. This means that a franchisee will not receive this money back even if the transfer application is denied or if the franchisee decides not to proceed with the transfer. Prospective franchisees should carefully consider these costs before deciding to transfer their Extreme Art Studio Business.