What is the definition of 'Rider Business' in the context of the Extreme Art Studio Extreme Art Rider?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, you and we will execute the then-current form of Extreme Art Rider ("Extreme Art Rider"), the current form of which is attached to this Franchise Agreement in Attachment E but which may vary materially and substantially from the form attached to this Franchise Agreement.
If you operate multiple Extreme Art Studio Businesses, each reference to the "Franchised Business" herein shall refer to each individual Extreme Art Studio Business that you operate under this Franchise Agreement, unless otherwise specified.
All obligations under this Franchise Agreement shall apply individually to each Extreme Art Studio Business you operate.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Rider is an agreement that franchisees sign prior to opening their second, or any subsequent, Extreme Art Studio Business under a Standard Franchise (Multi-2 or Multi-3). The document does not explicitly define "Rider Business;" however, it is implied that the Rider Business refers to each additional Extreme Art Studio Business operated under the Extreme Art Rider.
When a franchisee is granted a Standard Franchise, they must sign a Multi-Franchise Addendum. Before opening the second and each subsequent Extreme Art Studio Business, both the franchisee and Extreme Art Studio will execute the then-current form of the Extreme Art Rider. The franchise agreement states that all obligations apply individually to each Extreme Art Studio Business that the franchisee operates.
Prospective franchisees should note that the form of the Extreme Art Rider attached to the Franchise Agreement may vary materially and substantially from the form that will be in effect when they sign an Extreme Art Rider for a subsequent Extreme Art Studio Business. Franchisees should carefully review the then-current form of the Extreme Art Rider with legal counsel prior to signing.