What is the cure period for failing to pay amounts due to Extreme Art Studio before termination?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
15.1 PAYMENT OF AMOUNTS OWED TO US. You agree to pay us within 15 days after this Franchise Agreement expires or is terminated, or on any later date that we determine, the amounts due to us (or our affiliates), the Royalties, Marketing Fees, interest, and all other amounts owed to us (and our affiliates) which then are unpaid. We have the right to set off any amount you or your owners owe us or our affiliates against any amounts we or our affiliates owe you or your owners. You acknowledge and agree that, upon the termination or expiration of this Franchise Agreement (including any Extreme Art Rider(s) then in effect), we shall not become responsible for paying any other third-party amounts you may owe to such third party.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees have 15 days to pay amounts owed to Extreme Art Studio after the franchise agreement expires or is terminated, or on any later date that Extreme Art Studio determines. This includes royalties, marketing fees, interest, and all other amounts owed to Extreme Art Studio or its affiliates.
Extreme Art Studio retains the right to offset any amounts the franchisee or their owners owe against any amounts that Extreme Art Studio or its affiliates owe to the franchisee or their owners. Upon termination or expiration of the franchise agreement, Extreme Art Studio will not be responsible for any third-party amounts the franchisee may owe.
It is important for prospective franchisees to understand this payment obligation upon termination or expiration, as it could impact their financial situation. Franchisees should ensure they have a plan to settle all outstanding debts within the specified timeframe to avoid further complications or legal issues.