What is the condition regarding compliance with System Standards for Extreme Art Studio franchise renewal?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
If you (and each of your owners) are not, both on the date you give us written notice of your election to acquire a successor franchise and on the date on which the term of the successor franchise commences, in full compliance with this Franchise Agreement and all System Standards, you acknowledge that we need not grant you a successor franchise, whether or not we had, or chose to exercise, the right to terminate this Franchise Agreement during its term under Section 14.2.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, full compliance with the Franchise Agreement and all System Standards is required both when a franchisee provides written notice of their intent to acquire a successor franchise and when the term of the successor franchise begins. If the franchisee or any of their owners are not in full compliance on these dates, Extreme Art Studio is not obligated to grant a successor franchise, regardless of whether they had the right to terminate the existing agreement during its term.
To obtain a successor franchise, the franchisee must notify Extreme Art Studio in writing between 6 and 12 months before the current agreement expires. Extreme Art Studio will then notify the franchisee within three months of their decision, which may include granting the successor franchise, granting it on the condition that existing deficiencies are corrected, or denying it based on non-compliance with the agreement or System Standards.
If deficiencies need correction, Extreme Art Studio will detail the necessary improvements, technology upgrades, trade dress updates, or modifications to meet the current System Standards for new Extreme Art Studio businesses. The notice will also specify the actions required to correct operating deficiencies and the timeframe for these corrections. Failure to correct these deficiencies can result in denial of the successor franchise, with at least 90 days' notice provided before the agreement expires, unless the breach occurs within that 90-day period.