What is Extreme Art Studio authorized to do with special or restrictive legends on checks?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio is authorized to remove any special or restrictive legend or endorsement on any check or similar item given to them by a franchisee. The FDD states that after removal, the legend or endorsement will have no effect. This means that any attempt by a franchisee to use a check to create a waiver, compromise, settlement, or accord and satisfaction is nullified by Extreme Art Studio's right to remove the restrictive language.

This clause protects Extreme Art Studio from franchisees attempting to alter their legal obligations through notations on checks. For example, a franchisee cannot write "payment in full" on a check for less than the full amount owed and expect it to be binding. Extreme Art Studio can simply remove the notation and deposit the check without relinquishing its right to collect the remaining balance.

For a prospective franchisee, this underscores the importance of understanding all financial obligations and resolving disputes through proper channels rather than attempting to use check endorsements as a shortcut. It highlights that Extreme Art Studio intends to maintain strict control over the terms of the franchise agreement and will not allow unilateral modifications through payment methods.