What is the stated purpose of the Extreme Art Studio Brand Fund?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Brand Fund is established to enhance the recognition of the Extreme Art Studio Marks, increase patronage of Extreme Art Studio Businesses, and generally promote the Extreme Art Studio brand. The Brand Fund is a national advertising and marketing fund that supports the marketing, development, and promotion of the Extreme Art Studio system.

Extreme Art Studio franchisees are required to contribute to the Brand Fund, with contributions set at one percent (1%) of their Gross Sales, payable in the same manner as royalty fees. While Extreme Art Studio aims to use the Brand Fund to create advertising and marketing materials and programs that benefit all franchisees, there is no guarantee that the expenditures in any specific geographic area will be proportionate to the contributions from that area.

Extreme Art Studio maintains control over the programs financed by the Brand Fund, including creative concepts, materials, endorsements, and their placement. The Brand Fund may be used for various activities such as preparing marketing materials, maintaining the System Website, administering marketing programs, using advertising agencies, and supporting public relations and market research. The Brand Fund is accounted for separately from Extreme Art Studio's other funds, and while it is not a trust, contributions are held for the benefit of the contributors and used only for the specified purposes. An annual, unaudited statement of Brand Fund collections and expenses is available to franchisees upon written request.