What is an 'Approved Location' for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
All obligations under this Franchise Agreement shall apply individually to each Extreme Art Studio Business you operate.
- 1.4.2 We must authorize the specific location for your Studio (each an "Approved Location").
The Approved Location for your initial Extreme Art Studio Business will be designated in Attachment B, and the Approved Location for any additional Extreme Art Studio Businesses will be specified in the Extreme Art Rider applicable thereto.
If the Approved Location for your initial Extreme Art Studio Business has not been selected and approved at the time this Franchise Agreement is signed, or the Approved Location for any of your subsequent Extreme Art Studio Businesses have not been selected and approved at the time the Extreme Art Rider applicable thereto is signed, Attachment B (with respect to the initial Extreme Art Studio Business) or the applicable Extreme Art Rider (with respect to any subsequent Extreme Art Studio Business) will describe the Approved Location in general terms.
When we subsequently approve a location for your Extreme Art Studio Business, we will complete Attachment B-1 or our then-current form of Attachment E-1, as applicable, to specify the address of that location, and such location will automatically become the Approved Location for the applicable Extreme Art Studio Business as if originally set forth in Attachment B or the Extreme Art Rider.
Although we may assist you, you are solely responsible for selecting each Approved Location and negotiating the lease or purchase terms for each of your Extreme Art Studio Businesses.
You agree that you are not guaranteed any specific Approved Location for any of your Extreme Art Studio Businesses, and you may not be able to obtain your top choice for any of your Extreme Art Studio Businesses.
You and we must reach agreement on an Approved Location for your Studio within four months after you sign this Franchise Agreement, or we have the option to terminate this Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, an 'Approved Location' is a specific site that Extreme Art Studio has authorized for a franchisee to operate their studio business. The approved location for the initial Extreme Art Studio Business will be designated in Attachment B of the franchise agreement. If the location hasn't been selected and approved when the agreement is signed, Attachment B will describe the location in general terms. For additional studios, the approved location will be specified in an Extreme Art Rider.
Extreme Art Studio has the right to vary System Standards for any franchise owner based upon the peculiarities of any condition that they consider important to that franchise owner's successful operation. Extreme Art Studio may choose not to authorize similar variations or accommodations to other franchise owners. The franchisee is responsible for selecting the location, though Extreme Art Studio may provide assistance with site selection, evaluation, lease review, and construction project management. The franchisee cannot operate outside of their territory, and they must get written approval from Extreme Art Studio before leasing or purchasing a site.
Extreme Art Studio will complete Attachment B-1 or Attachment E-1 to specify the address of the approved location, which then automatically becomes the official Approved Location. The franchisee is not guaranteed any specific location and might not get their top choice. An agreement on the Approved Location must be reached within four months of signing the Franchise Agreement, or Extreme Art Studio has the option to terminate the agreement. Extreme Art Studio's approval is simply a determination that the site meets their current criteria and does not constitute a warranty of the site's suitability. The franchisee is expected to conduct their own independent investigation into the location's suitability.
Prospective franchisees should note that they are responsible for ensuring the location complies with all applicable laws and regulations, including the ADA and safety requirements. The lease agreement must include terms and conditions required by Extreme Art Studio, and the franchisee may be required to sign a personal guarantee. The franchisee must enter into a lease within six months of the Effective Date.