To whom are payments for grand opening promotion 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, |
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, franchisees must spend between $5,000 and $10,000 on an approved grand opening advertising campaign. These payments are made to approved suppliers.
This means that new Extreme Art Studio franchisees will need to budget for this expense as part of their initial investment. The FDD specifies that the grand opening promotion payments are made 'as incurred,' meaning franchisees will likely pay for these services as they are used during the grand opening period.
It is important for prospective franchisees to understand who the 'approved suppliers' are and what types of advertising campaigns are considered 'approved' by Extreme Art Studio. This ensures that the franchisee's spending meets the franchisor's requirements and maximizes the impact of the grand opening promotion. Franchisees should discuss these requirements with Extreme Art Studio to ensure compliance and effective use of the grand opening budget.