What is the effect of consent to transfer an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.4 EFFECT OF CONSENT TO TRANSFER. Our consent to a transfer of this Franchise Agreement and the Franchised Business, or any interest in you or your owners, is not a representation of the fairness of the terms of any contract between you and the transferee, a guarantee of the Franchised Business's or transferee's prospects of success, or a waiver of any claims we have against you (or your owners) or of our right to demand the transferee's full compliance with this Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the consent to a transfer of the franchise agreement and the franchised business does not constitute a guarantee of success for either the business or the transferee. It also does not represent the fairness of the terms between the franchisee and the transferee.
Furthermore, Extreme Art Studio's consent to a transfer does not waive any existing claims that Extreme Art Studio has against the franchisee or their owners. Extreme Art Studio retains the right to demand full compliance with the franchise agreement from the transferee, ensuring that the new owner adheres to all the original terms and conditions.
This provision protects Extreme Art Studio by ensuring that the transfer of ownership does not diminish their rights or create any guarantees regarding the future performance of the franchise. Prospective franchisees should understand that obtaining consent to transfer does not absolve them of any prior obligations or liabilities to Extreme Art Studio, nor does it ensure the success of the new owner.