Under what conditions can the Technology Fee for an Extreme Art Studio franchise be increased or decreased?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | Then-current fee (currently $400 per month) for the first Extreme Art Studio Business and the discounted rate for each additional Extreme Art Studio Business (currently $300 per month per additional Extreme Art Studio Business) | The first payment is due on the 1st day of the second month after signing the Franchise Agreement. Thereafter, monthly within five days of the end of the calendar month | For use of our online systems, website, applications, email, data sharing, integration and maintenance of DB Software, learning management software, search engine optimization for lead generation, and other Internet-related functions. We reserve the right to increase or decrease this fee, upon 30 days' written notice, in the event we offer updated or additional software or technology for use in the Extreme Art Studio Business or in the event of increases from third party suppliers. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Technology Fee can be adjusted under specific circumstances. The standard Technology Fee is currently $400 per month for the first Extreme Art Studio Business, with a discounted rate of $300 per month for each additional Extreme Art Studio Business.
Extreme Art Studio reserves the right to change the Technology Fee, providing 30 days' written notice to franchisees. This adjustment can occur if Extreme Art Studio offers updated or additional software or technology for use in the Extreme Art Studio Business. Additionally, the fee may change in the event of increases from third-party suppliers.
For a prospective Extreme Art Studio franchisee, this means that the monthly Technology Fee is not fixed and can fluctuate based on improvements to the technological resources provided or due to external cost increases. It is important to stay informed of any notices regarding changes to this fee to properly budget and manage expenses. Franchisees should also inquire about the typical frequency and magnitude of past Technology Fee adjustments to better anticipate future changes.