On what page of the Extreme Art Studio Franchise Agreement does the section on 'FEES' begin?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
System we designate may give us and our affiliates independent, unlimited access to all information relating to the Franchised Business generated by the Computer System, including, but not limited to, customer, price maintenance and payroll information. At our request, you agree to sign a release with any vendor of your Computer System providing us with unlimited access to your data. You also agree to provide us with access to the WordPress, Class Registration Software, Database Management Software and cameras used in your Extreme Art Studio Business.
2.3.3 You will pay us or our affiliate a Technology Fee (as set forth in Section 3.4) for use of any software or other technology that we (or our affiliates) license or provide to you. Despite the fact that you agree to buy, license, use, and maintain the Computer System according to our standards and specifications, you will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, and upgrading of the Computer System; (2) your connectivity to the Computer System at all times; and (3) any and all consequences if the Computer System is not properly operated, maintained, and upgraded.
2.4 OPENING REQUIREMENTS.
2.4.1 If you will operate an Extreme Art Studio Business, you must begin operating your Extreme Art Studio Business at your Approved Location within twelve months of signing this Franchise Agreement (or 12 months after signing the Extreme Art Rider for subsequent Extreme Art Studio Business(es)). If you do not open and operate your Extreme Art Studio Business within the timeframes as set forth above, you shall pay us the Opening Extension Fee (defined below) until you open or until the Franchise Agreement (or, in our discretion, Extreme Art Rider) is terminated.
3. FEES.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the section regarding fees in the franchise agreement begins on a page where a picture is present, specifically labeled as . The document indicates that section 3, which is titled 'FEES,' starts on this page. This section is crucial for prospective franchisees as it outlines the various fees they will be obligated to pay to Extreme Art Studio throughout the duration of the franchise agreement.
Understanding these fees is essential for assessing the overall financial investment and potential profitability of an Extreme Art Studio franchise. The FDD further breaks down the different types of fees, including but not limited to the initial franchise fee, royalty fees, technology fees, and other potential charges. Each of these fees contributes to the total cost of owning and operating an Extreme Art Studio franchise, and franchisees should carefully review the terms and conditions associated with each one.
Prospective franchisees should pay close attention to the specific amounts, payment schedules, and any conditions that may affect the fees. For example, the royalty fee is calculated as a percentage of gross sales, while technology fees are fixed monthly amounts. Additionally, some fees may be subject to change with prior notice from Extreme Art Studio. By thoroughly understanding the fee structure, franchisees can make informed decisions and effectively manage their financial obligations to the franchisor.