What are some examples of System Standards that Extreme Art Studio provides to franchisees?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ance) that you (or your Operating Owner or any Designated Manager), or any employees incur during their attendance at any conferences, seminars, annual meetings, and/or training courses and programs.
- 4.2 GUIDANCE AND SYSTEM STANDARDS. We may advise you from time to time regarding the Franchised Business's operation based on your reports or our inspections. We will provide mandatory and suggested standards, specifications, operating procedures and rules ("System Standards") that we periodically prescribe for operating an Extreme Art Studio Business, and information on your other obligations under this Franchise Agreement, which may include, but are not limited to: (1) standards, specifications, and operating procedures and methods that Extreme Art Studio Businesses use, including, but not limited to, scheduling and managing classes; (2) customer service standards and policies; (3) qualifications for other employees, including criminal background checks (although you will have sole responsibility and authority concerning employee selection and promotion); (4) staffing levels, training, dress and appearance of your employees; (5) amounts and types of classes to be offered, including lesson class sizes; (6) days and hours of operation; (7) supplies, equipment and inventory management; (8) use and display of the Marks at the Franchised Business and on Operating Assets and other materials; (9) sales, marketing, advertising, and promotional strategies and programs, and materials/media used in these programs; (10) recommended liability waiver forms for customers; (11) use and acceptance of gift cards, loyalty programs, coupons, passes, certificates and discounts; (12) policies regarding credit and debit cards, credit card vendors (including, among other things, companies that provide services for electronic payment such as near field communication vendors like "Apple Pay" and "Google Wallet"), electronic payment, other payment systems, and check verification services, including compliance with the then-current Payment Card Industry Data Security Standards, as those standards may be revised and modified by the PCI Security Standards Council, LLC or any successor organization, or standards that we may reasonably specify; (13) required and recommended associations and memberships; (14) participation in market research and testing and product and service development programs, as well as participation in, and dues assessed for, advisory councils; and (15) administrative, accounting, reporting and record retention.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, System Standards include a range of guidelines and specifications that franchisees must adhere to in operating their businesses. These standards are designed to maintain uniformity and protect the brand's goodwill. Examples of these standards include scheduling and managing classes, customer service policies, and qualifications for employees, including criminal background checks.
Franchisees must also follow guidelines related to staffing levels, employee training, dress, and appearance, as well as the amounts and types of classes offered, including lesson class sizes. System Standards also cover days and hours of operation, supplies, equipment and inventory management, and the use and display of the Extreme Art Studio Marks on various materials.
Furthermore, franchisees must adhere to standards related to sales, marketing, advertising, and promotional strategies, including the materials and media used. They must also use recommended liability waiver forms for customers and follow policies regarding gift cards, loyalty programs, coupons, passes, certificates, and discounts. These standards extend to credit and debit card policies, electronic payment systems, and compliance with data security standards.
Extreme Art Studio also specifies standards for required and recommended associations and memberships, participation in market research, and administrative, accounting, reporting, and record retention practices. These System Standards are communicated through the Franchise Operations Manual and other written or electronic forms, and franchisees are responsible for implementing and maintaining these standards in their day-to-day operations.