To whom are payments for additional funds for three months made when opening an Extreme Art Studio?
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 | ||||
| Furniture, Fixtures, | $9,500 |
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 payments for additional funds for three months are made to landlords and utility companies. This estimate includes initial startup expenses during the first three months of operation, not accounted for in other items. The estimated cost for these additional funds ranges from $9,000 to $15,000.
These additional funds cover costs that may arise during the initial months of operation. These are estimates, and Extreme Art Studio does not guarantee that franchisees will not have additional expenses. It is important for prospective franchisees to carefully consider these potential costs and budget accordingly.
Understanding to whom these payments are directed helps a franchisee plan their finances and build relationships with the appropriate entities. It is important to note that these expenses are estimates and can vary based on the location and specific circumstances of the Extreme Art Studio business.