What is the Extreme Art Rider, and when is it executed for a Standard Extreme Art Studio Franchise?
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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Rider is a supplementary agreement executed in addition to the standard franchise agreement when a franchisee purchases a Standard Franchise (Multi-2 or Multi-3) to operate multiple Extreme Art Studio businesses. The rider's current form is attached to the Franchise Agreement as Attachment E, though the FDD notes that this form may change materially and substantially over time.
For franchisees pursuing a Standard Franchise, the Extreme Art Rider is signed prior to opening the second and each subsequent Extreme Art Studio Business. This agreement likely outlines the specific terms and conditions applicable to each additional location, ensuring that all parties are aligned on the operational and financial expectations for each studio.
The FDD also specifies that the Approved Location for any additional Extreme Art Studio Businesses will be specified in the Extreme Art Rider applicable thereto. Furthermore, if 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, the applicable Extreme Art Rider will describe the Approved Location in general terms. When Extreme Art Studio subsequently approves a location for your Extreme Art Studio Business, they will complete their then-current form of Attachment E-1 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.