Does a demand for arbitration postpone the termination of the Extreme Art Studio Franchise Agreement?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, a demand for arbitration does not postpone or stay the effectiveness of a franchise termination.

Specifically, the FDD states that even if a franchisee demands arbitration, the termination of the Franchise Agreement proceeds without delay. This means that Extreme Art Studio can continue with the termination process, and the franchisee must comply with all post-termination obligations, regardless of the pending arbitration.

This policy ensures that Extreme Art Studio can promptly address any breaches of the agreement and maintain consistency across its franchise system. However, the franchisee still retains the right to pursue their claims through arbitration, although the termination remains in effect while the arbitration is ongoing.