Does Extreme Art Studio allow franchisees to promote their business online?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
you will offer under the Modules.
You may not solicit, offer or provide services to customers outside your Territory, including by any alternative channel including the Internet, wholesale, catalog sales, telemarketing, or other direct marketing of distribution. We may allow you to promote your Extreme Art Studio Business to customers in your Territory via alternate online strategies consistent with our online policy as contained in our Franchise Operations Manual. You may offer and sell approved products and services only in the manner we have prescribed and via methods and channels we permit. You will not receive exclusive territory. You may face competition from other Extreme Art Studio Businesses located outside the Territory or from other channels of distribution or competitive brands that we or affiliates control.
Your rights in the Territory and the continuation of your Franchise do not depend on your achieving a certain sales volume, market penetration, or other contingency, and there are no other circumstances that permit us to modify your rights in the Territory during the term of the Franchise Agreement.
We and our affiliates retain all territory rights not expressly granted to you.
Source: Item 12 — TERRITORY (FDD pages 37–39)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees are limited in their ability to solicit customers outside of their territory, including through online channels. However, Extreme Art Studio may allow franchisees to promote their business to customers within their territory using online strategies that align with the company's online policy, as detailed in the Franchise Operations Manual. This indicates that while franchisees are not entirely restricted from online promotion, their activities are subject to Extreme Art Studio's approval and guidelines.
Extreme Art Studio retains the right to use the Marks and System to sell products or services through alternative channels of distribution, including the internet, both within and outside the franchisee's territory. Additionally, Extreme Art Studio has the right to allow other Extreme Art Studio Businesses to advertise, solicit, accept orders, and offer and sell products and services to customers located outside the Territory of your Extreme Art Studio Businesses, including via the System Website. This means that Extreme Art Studio can engage in online sales and marketing efforts independently or through other franchisees, potentially creating competition for individual franchisees.
For a prospective franchisee, this implies that online marketing efforts must be carefully coordinated with Extreme Art Studio to ensure compliance with their policies. Franchisees should seek clarification on what specific online strategies are permitted and how they can effectively utilize online channels to reach customers within their designated territory. Understanding the extent to which Extreme Art Studio and other franchisees can engage in online sales outside of their territory is also crucial for assessing potential competition and market reach.