What is the deadline for opening an Extreme Art Studio after signing the Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Schedule for Opening
You must begin offering services from the Studio within 12 months of signing the Franchise Agreement. Factors that affect this length of time include securing any necessary financing; selecting the Studio site; negotiating the lease; obtaining necessary permits; completing leasehold improvements; delivery of equipment, inventory and supplies; completing our initial training program; and hiring and training employees, If you fail to open your Extreme Art Studio Business within 12 months of signing the Franchise Agreement or Extreme Art Rider, we may terminate your Franchise Agreement (without providing you a refund) or you will be required to pay us an "Opening Extension Fee" of $1,000 per month until you open or until the Franchise Agreement is terminated.
You may not open your Extreme Art Studio Business until: (1) we notify you in writing that all of your pre-opening obligations have been fulfilled; (2) you have completed the initial training program to our satisfaction and have commenced the on-site assistance program; (3) all amounts due to us have been paid; (4) we have been furnished with copies of all insurance policies and certificates required by the Franchise Agreement, or other documentation of insurance coverage and payment of premiums that we request; (5) you notify us that all approvals and conditions set forth in the Franchise Agreement have been met; (6) you have received all required permits and licenses; and (7) you have ordered, received and installed your equipment, supplies, inventory and computer system. You must be prepared to begin operating your Extreme Art Studio Business after we state that your Extreme Art Studio Busine
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, a franchisee must begin offering services from their studio within 12 months of signing the Franchise Agreement. This timeframe is influenced by factors such as securing financing, site selection, lease negotiation, obtaining permits, completing leasehold improvements, equipment delivery, initial training, and hiring employees.
Failure to open the Extreme Art Studio Business within this 12-month period may result in the termination of the Franchise Agreement without a refund. Alternatively, the franchisee may be required to pay an "Opening Extension Fee" of $1,000 per month until the studio opens or the Franchise Agreement is terminated.
However, even within the 12-month timeframe, an Extreme Art Studio franchisee cannot open for business until several conditions are met. These include written notification from Extreme Art Studio that all pre-opening obligations are fulfilled, completion of the initial training program, payment of all due amounts, provision of required insurance documentation, notification that all Franchise Agreement conditions are met, receipt of all required permits and licenses, and installation of all necessary equipment, supplies, inventory, and computer systems.