Does the Extreme Art Rider impose any specific obligations on Extreme Art Studio franchisees?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Once you have received approval of the site location for the initial Extreme Art Studio Business that satisfies the demographics and location requirements minimally necessary for an Extreme Art Studio Business and that meets our minimum current standards and specifications for the build out, interior design, layout, floor plan, signs, designs, color and décor, we will complete Attachment E-1 attached hereto, to specify the Approved Location for your initial Extreme Art Studio Business as provided in Section 1.4 of the Agreement.
6. Territory. Once you and we have mutually agreed upon a Territory in conformance with the territory guidelines stated in Item 12 of the Franchise Disclosure Document, we will complete Attachment E-1 to specify the Territory.
7. Services Provided by Extreme Art Franchising for the Extreme Art Studio Business. Except as otherwise provided in the Franchise Agreement, we or our designees shall provide the pre-opening and ongoing services set forth in Section 4 of the Franchise Agreement to Franchisee related to its Rider Business.
8. Termination, Expiration and Renewal.This Extreme Art Rider and Franchisee's right to operate the Rider Business hereunder shall terminate as of the date of termination or expiration of the Franchise Agreement, or upon a transfer of the Rider Business in compliance with the provisions of the Franchise Agreement, regardless of when this Extreme Art Rider is executed, and shall be subject to the renewal provisions of Section 13 of the Franchise Agreement.
-
- Franchise Agreement and Extreme Art Riders. Franchisee shall exercise the rights under this Addendum only by entering into a separate Extreme Art Rider with Franchisor for each Additional Franchise. Franchisee shall sign the current form of Extreme Art Rider then being used by Franchisor for an Extreme Art franchise for each Additional Franchise. Franchisee acknowledges that the then-current form of Extreme Art Rider may differ from the Extreme Art Rider found in the Franchise Agreement. Franchisee will not be required to pay a separate initial franchise fee.
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 imposes several obligations on franchisees who operate more than one Extreme Art Studio Business. Specifically, franchisees operating a Standard Franchise (Multi-2 or Multi-3) must execute the then-current form of the Extreme Art Rider before opening their second and subsequent studios. The FDD notes that the form of the Extreme Art Rider attached to the Franchise Agreement may differ materially from the current form.
The Extreme Art Rider also specifies terms related to site location approval for additional Extreme Art Studio Businesses. Once Extreme Art Studio approves a site location that meets demographic and location requirements, as well as the brand's standards for build-out, interior design, and signage, they will complete Attachment E-1 to specify the Approved Location. Furthermore, the franchisee and Extreme Art Studio must mutually agree upon a territory, and this territory will be specified in Attachment E-1, in accordance with the guidelines in Item 12 of the FDD.
The Extreme Art Rider outlines the services that Extreme Art Studio Franchising will provide to franchisees related to their Rider Business, as detailed in Section 4 of the Franchise Agreement. The Rider and the franchisee's right to operate the Rider Business will 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 in Section 13 of the Franchise Agreement. Franchisees must also sign the current form of the Extreme Art Rider for each additional franchise, acknowledging that the form may differ from the one in the Franchise Agreement, but they will not be required to pay a separate initial franchise fee for each additional location.