Under what conditions can Extreme Art Studio increase or decrease the technology fee?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
be responsible for any increase in fees that result from any upgrades, modifications or additional systems or software and for any increases in fees from thirdparty vendors. We reserve the right to: (i) change or add approved suppliers or vendors of these services at any time, in our sole discretion; (ii) enter into a master license agreement with any software or technology supplier and sublicense the software or technology to you, in which case we may charge you for all amounts that we must pay to the licensor based on your use of the software or technology; (iii) create proprietary software or technology that must be used by Extreme Art Studio franchisees, in which case we may require that you enter into a license agreement with us and pay us reasonable initial and ongoing licensing, support and maintenance fees; and (iv) increase or decrease the technology fee and other technology and licensing and expenses that you are required to pay under this Franchise Agreement at any time, upon 30 days' written notice to you.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the franchisor reserves the right to adjust the technology fee under certain conditions. Extreme Art Studio may increase or decrease the technology fee and other technology and licensing expenses at any time. However, they must provide the franchisee with 30 days' written notice before making any changes.
Additionally, the franchisee is responsible for any increases in fees that result from upgrades, modifications, or additional systems or software. They are also responsible for any increases in fees from third-party vendors. This means that if Extreme Art Studio enhances its technology offerings or if the costs charged by their technology vendors increase, the franchisee will bear the burden of these additional expenses.
Extreme Art Studio also has the right to change or add approved suppliers or vendors of these services at any time, at their sole discretion. They can also enter into a master license agreement with any software or technology supplier and sublicense the software or technology to the franchisee. In this case, Extreme Art Studio may charge the franchisee for all amounts that they must pay to the licensor based on the franchisee's use of the software or technology. Furthermore, Extreme Art Studio can create proprietary software or technology that franchisees must use, requiring the franchisee to enter into a license agreement and pay reasonable initial and ongoing licensing, support, and maintenance fees.