What is the Extreme Art Studio transfer fee per business?
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, a franchisee who wishes to transfer their Extreme Art Studio business must pay a transfer fee. This fee is $10,000 for each Extreme Art Studio Business being transferred. In addition to the transfer fee, the franchisee is responsible for covering the costs of any applicable broker fees and any required training for the new owner.
To initiate the transfer process, the franchisee must submit a nonrefundable deposit of $1,000 for each Extreme Art Studio Business. The remaining balance of the transfer fee is due when the transfer documents are finalized and executed. This upfront deposit indicates the franchisee's serious intent to transfer the business and covers some of Extreme Art Studio's initial administrative costs.
It is important to note that the transferee must also satisfactorily complete Extreme Art Studio's then-current Initial Training Program. Furthermore, both the transferring and receiving parties must meet several other conditions, including signing Extreme Art Studio's current franchise agreement (which may have different terms than the original), signing a general release of claims, and ensuring all owners execute a guarantee. These stipulations ensure that the new franchisee is well-prepared and that Extreme Art Studio's interests are protected during and after the transfer.