Is there a Construction Management Fee for an Extreme Art Studio, and what does it cover?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Construction Management Fee (17) | $0 | $22,000 | As Incurred | As Incurred | Approved Suppliers |
You may opt to use our approved construction management supplier to manage the entire build out and construction of your Studio.
This fee is for the purposes of managing the entire build out, permitting and construction management of your Studio, including managing general contractors and sub-contractors.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, there is a Construction Management Fee. This fee is optional, and if a franchisee chooses to use Extreme Art Studio's approved construction management supplier, the fee ranges from $0 to $22,000. This fee is paid to approved suppliers as incurred.
The Construction Management Fee covers the management of the entire build-out, permitting, and construction of the Extreme Art Studio, including managing general contractors and subcontractors. This service can help streamline the process of setting up the studio and ensure it meets the brand's standards.
Choosing to use the approved supplier for construction management can provide franchisees with expertise and oversight during the construction phase. However, franchisees should evaluate whether the benefits of this service justify the cost, as they have the option to manage the construction themselves or use another supplier. Franchisees should also confirm with Extreme Art Studio what specific services are included in the construction management fee to fully understand its value.