To whom do I pay the DB Software Implementation Fee for an Extreme Art Studio franchise, and when is it due?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
INVESTMENT
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise | $45,000 | $45,000 | Lump sum | Upon signing Franchise | Us |
| Fee(1) | Agreement | ||||
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the DB Software Implementation Fee, ranging from $1,500 to $1,500, is paid to Extreme Art Studio itself. This payment is due in a lump sum upon signing the Franchise Agreement. This fee covers the setup and launch of the DB Software, which is essential for managing the Extreme Art Studio business.
Prospective franchisees should factor this cost into their initial investment, ensuring they have the necessary funds available when signing the agreement. Understanding when and to whom these payments are made helps in planning the financial aspects of starting the franchise.
It is also important to note that this implementation fee is separate from the ongoing DB Software Fee, which is paid to approved suppliers, as indicated elsewhere in the FDD. Therefore, franchisees need to budget for both the initial setup cost and the recurring monthly fees to maintain the software's functionality.