When is the remaining amount of the Extreme Art Studio transfer fee due?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
hise agreement signed will equal the remainder of the then-remaining term of this Franchise Agreement;
- (g) you pay us a transfer fee for each Extreme Art Studio Business to be transferred equal to $10,000 per
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, a franchisee who is transferring their Extreme Art Studio Business must pay a transfer fee of $10,000. When requesting approval for the transfer, the franchisee must submit a nonrefundable deposit of $1,000. The remaining balance of the transfer fee is due when the franchisee executes the transfer documents.
This means that a significant portion of the transfer fee is not due until the final stages of the transfer process. This could benefit the franchisee by allowing them to delay the full payment until the transfer is nearly complete.
However, it is important to note that the initial $1,000 deposit is nonrefundable. Therefore, if the transfer does not go through for any reason, the franchisee will not receive this portion of the fee back. Franchisees should carefully consider the likelihood of a successful transfer before paying the initial deposit.