Under what conditions can Extreme Art Studio dissolve the Brand Fund?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio may dissolve the Brand Fund by providing written notice. The Brand Fund is used for marketing, developing, and promoting the Extreme Art Studio system, marks, and businesses. Franchisees are required to contribute one percent of their gross sales to the Brand Fund, in addition to other advertising requirements.

Extreme Art Studio retains complete discretion over how the Brand Fund is utilized, including for local, regional, or national marketing, advertising, sales promotion, public relations, website development, search engine optimization, and technology development. The Brand Fund can also be used to reimburse Extreme Art Studio and its affiliates for administrative costs, audits, accounting, legal expenses, and other direct or indirect expenses associated with the programs funded by the Brand Fund.

While franchisees contribute to the Brand Fund, Extreme Art Studio does not guarantee that advertising expenditures from the fund will directly benefit any specific franchisee or geographical area. Unused funds from any calendar year will be applied to the following year's funds, and Extreme Art Studio reserves the right to contribute or loan additional funds to the Brand Fund. The Brand Fund is not audited, but Extreme Art Studio will provide an annual unaudited accounting of how the funds were spent upon written request.