What does the Technology Fee for an Extreme Art Studio franchise cover?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | Then-current fee (currently $400 per month) for the first Extreme Art Studio Business and the discounted rate for each additional Extreme Art Studio Business (currently $300 per month per additional Extreme Art Studio Business) | The first payment is due on the 1st day of the second month after signing the Franchise Agreement. Thereafter, monthly within five days of the end of the calendar month | For use of our online systems, website, applications, email, data sharing, integration and maintenance of DB Software, learning management software, search engine optimization for lead generation, and other Internet-related functions. We reserve the right to increase or decrease this fee, upon 30 days' written notice, in the event we offer updated or additional software or technology for use in the Extreme Art Studio Business or in the event of increases from third party suppliers. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Technology Fee covers the use of their online systems, website, applications, email, data sharing, integration and maintenance of DB Software, learning management software, search engine optimization for lead generation, and other Internet-related functions. The then-current fee is $400 per month for the first Extreme Art Studio Business and a discounted rate of $300 per month for each additional Extreme Art Studio Business.
This fee is due on the 1st day of the second month after signing the Franchise Agreement, and then monthly within five days of the end of the calendar month. Extreme Art Studio retains the right to increase or decrease this fee with 30 days' written notice if they offer updated or additional software or technology, or if there are increases from third-party suppliers.
For a prospective franchisee, this means that a portion of their monthly expenses will be allocated to maintaining the technological infrastructure necessary to operate the Extreme Art Studio business. It is important to note that the fee can change, potentially impacting the franchisee's budget. Franchisees should inquire about the historical frequency and magnitude of these fee adjustments to better anticipate future costs.