What does the Extreme Art Studio transfer fee cover, besides the transfer itself?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
the provisions of which may differ materially from any and all of those contained in this Franchise Agreement, including the Royalty and the Marketing Fees; provided, however, that the term of the new franchise agreement signed will equal the remainder of the then-remaining term of this Franchise Agreement;
- (g) you pay us a transfer fee for each Extreme Art Studio Business to be transferred equal to $10,000 per
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the transfer fee covers not only the transfer of the franchise but also other associated costs. Specifically, the franchisee is responsible for paying a transfer fee of $10,000 for each Extreme Art Studio Business being transferred.
In addition to the $10,000 transfer fee, the franchisee must cover the cost of any applicable broker fees and any required training for the new franchisee. A nonrefundable deposit of $1,000 per Extreme Art Studio Business is required when requesting approval for the transfer, with the remaining balance due upon execution of the transfer documents.
This means that a franchisee looking to sell their Extreme Art Studio franchise needs to be prepared to pay not only the $10,000 transfer fee but also potential broker fees and training costs for the incoming franchisee. These additional costs can significantly impact the financial outcome of the transfer, so it's crucial to factor them into any negotiations and financial planning related to the sale.