To whom are payments for professional fees 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) | Ag |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, payments for professional fees, which range from $1,000 to $2,500, are made to an attorney or an accountant. These fees are typically incurred as needed throughout the initial setup phase of the Extreme Art Studio business.
The FDD recommends that franchisees hire a lawyer, accountant, or other professional to advise them on the franchise offering. The estimated range covers the costs associated with securing professional guidance during the franchise purchase and setup process. These professional fees are part of the overall initial investment required to start the business.
Prospective Extreme Art Studio franchisees should factor these professional fees into their budget and understand that the actual amount may vary based on the professional's rates and the complexity of the legal and financial advice needed. It is advisable to research and compare different professionals to ensure they receive competent advice at a reasonable cost.