Is the Extreme Art Studio Technology Fee refundable?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ology Fee*
You must pay us a monthly technology fee of $400 ("Technology Fee") beginning the first day of the second month after you sign the Franchise Agreement. The Technology Fee is uniform and nonrefundable.
Opening Extension Fee
If you fail to open the Extreme Art Business within 15 months effective date of your Franchise Agreement we may charge you an "Opening Extension Fee" of $1,000 per month until the Extreme Art Business or the termination of your Franchise Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the monthly Technology Fee is not refundable. Franchisees must pay a $400 Technology Fee starting the first day of the second month after signing the Franchise Agreement. This fee is uniform for all franchisees.
In addition to the standard Technology Fee, Extreme Art Studio franchisees who choose to purchase optional curriculum modules will be required to pay a separate monthly Module Technology Fee of $250, also beginning the first day of the second month after signing the Franchise Agreement. This Module Technology Fee is also uniform and non-refundable.
The non-refundable nature of these technology fees means that once paid, franchisees cannot recover these funds, regardless of circumstances such as early termination of the franchise agreement or failure to launch the business. This is a standard practice in franchising, as technology fees typically cover ongoing support, updates, and access to essential software and systems provided by the franchisor.