To whom are payments for technology 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) | Agreement | ||||
| Furniture, Fixtures, | $9,500 | $15,000 | As Incurred | As Incurred | Approved |
| and Equipment(2) | Suppliers | ||||
| Initial Inventory | $4,500 | $5,500 | As Incurred | As Incurred | Us and Approved |
| a |
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 technology fees are paid to different entities. The general technology fees are paid to Extreme Art Studio itself. However, the CR Software and DB Software fees are paid to approved third-party suppliers.
The estimated initial investment table in Item 7 provides a breakdown of these payments. It shows that the general technology fees range from $500 to $1,500 for the first three months and are paid to Extreme Art Studio. The CR Software fees for three months range from $105 to $1,605, while the DB Software fees for three months range from $675 to $900; both of these are paid to approved suppliers.
Prospective franchisees should note that these software fees are ongoing expenses. Item 7 only includes the initial three months of these fees in the estimated initial investment. Franchisees will need to budget for these monthly technology costs throughout the term of their franchise agreement. It is important to confirm with Extreme Art Studio which specific suppliers are approved and what factors determine the exact monthly fee for the CR and DB Software.