Can a demand for arbitration stop the termination of the Extreme Art Studio Franchise Agreement?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, a demand for arbitration will not prevent or delay the termination of the Franchise Agreement. Extreme Art Studio can still proceed with the termination, regardless of whether arbitration has been initiated.

This means that even if a franchisee believes Extreme Art Studio is unfairly terminating the agreement and seeks arbitration, the termination can still take effect while the arbitration process is ongoing. The franchisee would not be able to continue operating the business while awaiting the outcome of the arbitration.

This clause protects Extreme Art Studio's ability to terminate agreements it deems necessary, while still allowing franchisees the opportunity to dispute the termination through arbitration. However, the franchisee bears the risk of potential business closure during the arbitration process.