What is the total estimated initial investment range for opening an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
INVESTMENT
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | ||
|---|---|---|---|---|---|---|
| Low | High | |||||
| Initial Franchise | $45,000 | $45,000 | Lump sum | Upon signing Franchise | Us | |
| Fee(1) | Agreement | |||||
| Furniture, Fixtures, | $9,500 | $15,000 | As Incurred | As Incurred | Approved | |
| and Equipment(2) | Suppliers | |||||
| Initial Inventory | $4,500 | $5,500 | As Incurred | As Incurred | Us and Approved | |
| and Supplies(3) | Suppliers | |||||
| Insurance(4) | $1,000 | $2,500 | As Incurred | As Incurred | Insurance Providers |
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | ||
|---|---|---|---|---|---|---|
| Low | High | |||||
| Business Licenses | $50 | $300 | As Incurred | As Incurred | Third Parties | |
| and Permits(5) | ||||||
| Professional Fees(6) | $1,000 | $2,500 | As Incurred | As Incurred | Attorney, Accountant | |
| Signage(7) | $2,500 | $12,000 | As Incurred | As Incurred | Approved Suppliers | |
| Computers & | $1,000 | $2,000 | As Incurred | As Incurred | Approved | |
| Hardware(8) | Suppliers | |||||
| DB Software Implementation Fee(9) | $1,500 | $1,500 | Lump Sum | Upon signing Franchise Agreement | Us | |
| CR Software Implementation Fee(9) | $500 | $500 | Lump Sum | Upon signing Franchise Agreement | Us | |
| Grand Opening | $5,000 | $10,000 | As Incurred | As Incurred | Approved | |
| Promotion(10) | Suppliers | |||||
| Uniforms(11) | $100 | $200 | As Incurred | As Incurred | Us or Approved Suppliers | |
| Initial Training | $2,000 | $3,000 | As Incurred | As Incurred | Airline, Hotel, | |
| Expenses(12) | Restaurants, etc. | |||||
| Technology Fees | $500 | $1,500 | As Incurred | As Incurred | Us | |
| (13) | ||||||
| CR Software Fee for Three Months(13) | $105 | $1,605 | As Incurred | As Incurred | Approved Suppliers | |
| DB Software Fee for Three Months(13) | $675 | $900 | As Incurred | As Incurred | Approved Suppliers | |
| Rent, Security | $5,000 | $15,000 | As Incurred | As Incurred | Third Parties | |
| Deposit, Utility | ||||||
| Deposit(14) | ||||||
| Optional | $0 | $47,250 | Lump sum | Upon signing Franchise | Us | |
| Modules(15) | Agreement | |||||
| Additional Funds – | $9,000 | $15,000 | As Incurred | As Incurred | Landlord, Utility | |
| Three Months(16) | Companies | |||||
| Construction Management Fee (17) | $0 | $22,000 | As Incurred | As Incurred | Approved Suppliers | |
| Leasehold Improvements(18) | $25,000 | $125,000 | As Incurred | As Incurred | Landlord, Contractors, Other Suppliers |
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Architect(19) | $5,000 | $12,000 | As Incurred | As Incurred | Approved Suppliers |
| Liquor License(20) | $0 | $15,000 | As Incurred | As Incurred | Third Parties, Government Agencies |
| TOTAL | $119,030 | $355,455 | |||
| ESTIMATED | |||||
| INITIAL | |||||
| INVESTMENT(21) | |||||
| Standard 2 Franchise | If you purchase a Standard 2 Franchise under the Multi-Franchise Addendum, you will incur all of the costs listed above for each Extreme Art Studio Business you open except that the Initial Franchise Fee will total $80,000 and allow you to open up to two Extreme Art Studio Businesses. If you were to open two Extreme Art Studio Businesses using the same estimated initial expenses above, we estimate this total cost to range between $227,860 to $701,210. These costs may increase in the future depending on when you open the additional Extreme Art Studio Businesses. |
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, the total estimated initial investment to open an Extreme Art Studio ranges from $119,030 to $355,455. This investment covers a variety of expenses, including architect fees ranging from $5,000 to $12,000, and the potential cost of a liquor license, which could be as high as $15,000, or $0 if the franchisee chooses not to serve alcohol.
The initial investment also includes several fixed costs and variable expenses. Fixed costs include fees paid to Extreme Art Studio, such as the DB Software Implementation Fee of $1,500 and the CR Software Implementation Fee of $500. Variable costs include expenses like business licenses and permits, estimated between $50 and $300, professional fees ranging from $1,000 to $2,500, and signage, which can cost between $2,500 and $12,000. Other significant costs are computers and hardware ($1,000 to $2,000), grand opening promotion ($5,000 to $10,000), and initial training expenses ($2,000 to $3,000).
Additional costs to consider are technology fees, CR Software fees for three months ($105 to $1,605), DB Software fees for three months ($675 to $900), and rent, security deposit, and utility deposits ($5,000 to $15,000). Furthermore, franchisees may incur costs for optional modules, which can range from $0 to $47,250, and additional funds for the first three months of operation, estimated between $9,000 and $15,000. An optional construction management fee could add up to $22,500 to the initial investment. These figures provide a comprehensive overview of the financial commitment required to start an Extreme Art Studio franchise.