Is Extreme Art Studio required to contribute to the Brand Fund for businesses they or their affiliates own?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio Businesses owned by Extreme Art Studio or its affiliates are not required to contribute to the Brand Fund. While franchisee-owned businesses must contribute 1% of their gross sales to the Brand Fund, Extreme Art Studio and its affiliates have the option, but not the obligation, to contribute on the same basis.

This means that Extreme Art Studio retains the flexibility to decide whether or not to financially support the Brand Fund for its own company-owned or affiliate-owned locations. This could potentially create a situation where franchisees are contributing to marketing efforts that primarily benefit the brand as a whole, while Extreme Art Studio's own locations may or may not be contributing to the same extent.

Prospective franchisees should consider this when evaluating the overall marketing strategy and financial obligations associated with the franchise. It would be prudent to inquire about Extreme Art Studio's historical contributions to the Brand Fund from its company-owned or affiliate-owned locations to understand their level of participation and commitment to the fund.