Must a Designated Manager for an Extreme Art Studio franchise complete the Initial Training Program?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
8.5 MANAGEMENT OF THE FRANCHISED BUSINESS. You (or your Operating Owner, if you are an Entity) are responsible for the day-to-day management, direction, and control of the Franchised Business, subject to the terms and conditions of this Franchise Agreement. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to supervise the day-to-day operations of the Extreme Art Studio Business. The Designated Manager must successfully complete our Initial Training Program. The Designated Manager need not have an ownership interest in the Franchisee Entity. If, at any time during the term of the Franchise Agreement, you replace your Operating Owner and/or Designated Manager, that replacement must attend and successfully complete the first available Initial Training Program. You will be charged a training fee for each and every replacement Operating Owner and/or Designated Manager and will be responsible for all costs for airfare, ground transportation, lodging, meals and expenses. You (or your Operating Owner) or your Designated Manager (if any) must continuously exert your (or his or her) best efforts to promote and enhance the Franchised Business. The Franchised Business must always be under the direct, full-time supervision of you (or your Operating Owner) or your Designated Manager, if any. You are not required to directly manage and train the teachers; however, you must at all times have a Designated Manager (if someone other than you) who must have satisfactorily completed our Initial Training Program.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, if you choose to appoint a Designated Manager for your franchise, that manager must successfully complete the Initial Training Program. This requirement ensures that the person overseeing the day-to-day operations of the Extreme Art Studio Business is adequately trained in the brand's standards and procedures. The Designated Manager does not need to have an ownership stake in the franchise.
If the Operating Owner or Designated Manager is replaced at any point during the franchise term, the replacement must attend and successfully complete the first available Initial Training Program. Extreme Art Studio will charge a training fee for each replacement Operating Owner or Designated Manager. The franchisee is also responsible for covering all costs associated with travel, lodging, and other expenses for the replacement's training.
The FDD states that the franchisee (or the Operating Owner) or the Designated Manager must continuously exert their best efforts to promote and enhance the franchised business. The Extreme Art Studio Business must always be under the direct, full-time supervision of the franchisee (or the Operating Owner) or the Designated Manager, if one is appointed. While the franchisee is not required to directly manage and train the teachers, they must have a Designated Manager (if someone other than themselves) who has satisfactorily completed the Initial Training Program.