What document must a franchisee sign to operate an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You must sign our standard franchise agreement attached to this Franchise Disclosure Document as Exhibit B ("Franchise Agreement"). We may also offer to qualified candidates (subject to our approval), the opportunity to operate additional Extreme Businesses per our "Multi-Franchise Addendum" attached to this Franchise Disclosure Document as Exhibit H-7. The "Standard 2" Franchise package provides for you to operate two Extreme Art Studio Businesses. The "Standard 3" Franchise package provides for you to operate three Extreme Art Studio Businesses. Prior to opening additional Extreme Art Studio Businesses
under a Standard 2 Franchise or a Standard 3 Franchise, you will sign our then-current "Extreme Art Rider" for each additional Extreme Art Studio Business, which may differ from the Extreme Art Rider that is attached to this Franchise Disclosure Document as Exhibit H-8. You may operate one additional Extreme Art Studio Business for each Extreme Art Rider you sign. There is no development territory or development schedule to open additional Extreme Art Studio Businesses under the Multi-Franchise Addendum or Extreme Art Rider.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–10)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, a franchisee must sign the standard franchise agreement to operate an Extreme Art Studio franchise. This agreement is included as Exhibit B in the FDD.
Additionally, Extreme Art Studio offers opportunities for qualified candidates to operate multiple businesses through a "Multi-Franchise Addendum," which is Exhibit H-7 in the FDD. Franchisees who opt for the "Standard 2" or "Standard 3" franchise packages, allowing them to operate two or three Extreme Art Studio businesses respectively, will also need to sign an "Extreme Art Rider" for each additional location beyond the first. This rider may differ from the version included as Exhibit H-8 in the FDD and allows the franchisee to operate one additional Extreme Art Studio business per rider signed.
It is important for prospective franchisees to carefully review all these documents, including the franchise agreement, any multi-franchise addendums, and extreme art riders, to fully understand their rights and obligations. Understanding these agreements is crucial before making a final decision to invest in an Extreme Art Studio franchise.