What does the Extreme Art Rider evidence regarding the Extreme Art Studio Business?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Rider is a contract used when a franchisee is granted a Standard Franchise, allowing them to operate multiple Extreme Art Studio businesses. Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, both the franchisee and franchisor will execute the then-current form of the Extreme Art Rider. The current form of the Extreme Art Rider is attached to the Franchise Agreement but may vary materially and substantially from the form attached to the Franchise Agreement.

The Extreme Art Rider specifies the approved location for any additional Extreme Art Studio Businesses beyond the initial one. Once the site location is approved and meets the demographic, location, and build-out requirements, Attachment E-1 will be completed to specify the approved location. Similarly, once the territory is agreed upon in accordance with Item 12 of the FDD, Attachment E-1 will specify the territory. The franchisee is solely responsible for selecting each Approved Location and negotiating the lease or purchase terms for each of their Extreme Art Studio Businesses.

The Extreme Art Rider also outlines the services provided by Extreme Art Studio Franchising for the Rider Business, including pre-opening and ongoing support as detailed in the Franchise Agreement. The agreement clarifies that all obligations under the Franchise Agreement apply individually to each Extreme Art Studio Business operated by the franchisee. The Extreme Art Rider and the franchisee's right to operate the Rider Business terminate upon the termination or expiration of the Franchise Agreement, or upon a transfer of the Rider Business, and are subject to the renewal provisions of the Franchise Agreement.

If the approved location for any subsequent Extreme Art Studio Businesses have not been selected and approved at the time the Extreme Art Rider applicable thereto is signed, the applicable Extreme Art Rider will describe the Approved Location in general terms. When Extreme Art Studio subsequently approves a location for the Extreme Art Studio Business, they will complete Attachment B-1 or their 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 the Extreme Art Rider.