What is the definition of 'Interim Term' in the context of an expired Extreme Art Studio franchise agreement?

Based on the 2024 Franchise Disclosure Document, the term 'Interim Term' is not explicitly defined within the context of an expired Extreme Art Studio franchise agreement. However, the document does outline the conditions under which a franchisee can obtain a successor franchise agreement upon expiration of the original agreement.

Specifically, Section 13 discusses the franchisee's right to acquire a successor franchise, stating that if certain conditions are met, the franchisee has the option to acquire a successor franchise to operate the Extreme Art Studio business for an additional term of ten years. These conditions include substantial compliance with the existing agreement, updating operating assets if necessary, paying a successor franchise fee, and securing rights to use the studio location. The successor franchise fee is 10% of the then-current initial franchise fee for new franchises.

While the FDD does not use the term 'Interim Term,' it does address the possibility of extending the original franchise agreement's term to allow the franchisee time to correct deficiencies or to provide the franchisor with sufficient notice of refusal to grant a successor franchise. This extension could be considered an interim period, although it is not explicitly labeled as such. A prospective franchisee should clarify with Extreme Art Studio the specific conditions and implications of operating during any such extension period between the expiration of the original agreement and the potential commencement of a successor agreement.