Can Extreme Art Studio extend or modify the Franchisee's obligations without notifying the Owners?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We may, from time to time, without notice to Owners, assign or transfer any or all of Owners' rights, duties and obligations or any interest therein in this Owners Agreement and, notwithstanding any assignment(s) or transfer(s), the rights, duties and obligations shall be and remain for the purpose of this Owners Agreement.
Each and every immediate and successive assignee or transferee of any of the rights, duties or obligations of any interest therein shall, to the extent of such party's interest in the rights duties and/or obligations, be entitled to the benefits of this Owners Agreement to the same extent as if such assignee or transferee were us.
6. Notices.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio has the right to assign or transfer the Owner's rights, duties, and obligations without providing notice to the Owners. This means that Extreme Art Studio can transfer its responsibilities or interests in the Owners Agreement to another party without informing the Owners beforehand. The new party will then be entitled to the benefits of the Owners Agreement.
This clause gives Extreme Art Studio significant flexibility in managing its contractual relationships and business operations. For a prospective franchisee, this means that the entity they are initially contracting with could change without their prior knowledge. It is important to note that even if Extreme Art Studio assigns or transfers these rights, the original rights, duties, and obligations remain in place for the purpose of the Owners Agreement.
Furthermore, the FDD states that Extreme Art Studio and the franchisee can, through a written instrument, unilaterally waive or reduce any obligation or restriction upon the other under the Franchise Agreement. This becomes effective upon delivery of written notice. However, any waiver granted is subject to continuing review and may be revoked at any time with ten days' prior written notice. This indicates that while modifications can be made, they are not permanent and can be changed by Extreme Art Studio with advance notice.