How does the Extreme Art Rider affect the overall relationship between Extreme Art Studio and its franchisees?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
st sign our Multi-Franchise Addendum the form of which is attached to the Franchise Disclosure Document in Exhibit H. Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, you and we will execute the then-current form of Extreme Art Rider ("Extreme Art Rider"), the current form of which is attached to this Franchise Agreement in Attachment E but which may vary materially and substantially from the form attached to this Franchise Agreement. If you operate multiple Extreme Art Studio Businesses, each reference to the "Franchised Business" herein shall refer to each individual Extreme Art Studio Business that you operate under this Franchise Agreement, unless otherwise specified. All obligations under this Franchise Agreement shall apply individually to each Extreme Art Studio Business you operate.
- 1.4.2 We must authorize the specific location for your Studio (each an "Approved Location"). The Approved Location for your initial Extreme Art Studio Business will be designated in Attachment B, and the Approved Location for any additional Extreme Art Studio Businesses will be specified in the Extreme Art Rider applicable thereto. If the Approved Location for your initial Extreme Art Studio Business has not been selected and approved at the time this Franchise Agreement is signed, or the Approved Location for any of your subsequent Extreme Art Studio Businesses have not been selected and approved at the time the Extreme Art Rider applicable thereto is signed, Attachment B (with respect to the initial Extreme Art Studio Business) or the applicable Extreme Art Rider (with respect to any subsequent Extreme Art Studio Business) will describe the Approved Location in general terms. When we subsequently approve a location for your Extreme Art Studio Business, we will complete Attachment B-1 or our then-current form of Attachment E-1, as applicable, to specify the address of that location, and such location will automatically become the Approved Location for the applicable Extreme Art Studio Business as if originally set forth in Attachment B or the Extreme Art Rider. Although we may assist you, you are solely responsible for selecting each Approved Location and negotiating the lease or purchase terms for each of your Extreme Art Studio Businesses. You agree that you are not guaranteed any specific Approved Location for any of your Extreme Art Studio Businesses, and you may not be able to obtain your top choice for any of your Extreme Art Studio Businesses. You and we must reach agreement on an Approved Location for your Studio within four months after you sign this Franchise Agreement, or we have the option to terminate this Franchise Agreement.
- 1.4.3 The term of this Franchise Agreement begins on the Effective Date and expires ten years from that date, unless sooner terminated as provided herein.
- 1.5 TERRITORY.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Extreme Art Rider is a crucial component in the relationship between Extreme Art Studio and its franchisees, particularly those operating multiple locations under a Standard Franchise (Multi-2 or Multi-3). The Rider formalizes the agreement for each additional Extreme Art Studio Business beyond the initial one. It outlines the specific terms and conditions applicable to that additional location, ensuring that both parties are aligned on the operational and financial aspects of each Franchised Business.
The Extreme Art Rider specifies the Approved Location for each additional Extreme Art Studio Business, referencing Attachment E-1 to detail the site. It also confirms the mutually agreed-upon Territory, aligning with the guidelines in Item 12 of the Franchise Disclosure Document. Extreme Art Studio commits to providing pre-opening and ongoing services, as detailed in Section 4 of the Franchise Agreement, for the Rider Business. This ensures franchisees receive the necessary support to successfully launch and manage each additional location.
Furthermore, the Extreme Art Rider's term is directly linked to the Franchise Agreement. It terminates upon the termination or expiration of the Franchise Agreement, or upon the transfer of the Rider Business, and is subject to the renewal provisions of Section 13 of the Franchise Agreement. This dependency reinforces that each additional location operates under the umbrella of the original Franchise Agreement, maintaining a cohesive and consistent relationship between Extreme Art Studio and its franchisees across all locations. The franchisee must sign the current version of the Extreme Art Rider for each additional franchise, acknowledging that the terms may have changed from the initial agreement.