How does the Extreme Art Rider relate to the overall franchise agreement with Extreme Art Studio?
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.
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.
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 an addendum to the main Franchise Agreement that applies when a franchisee opens additional Extreme Art Studio locations beyond the initial one. The Franchise Agreement outlines the general terms and conditions for operating an Extreme Art Studio franchise, while the Extreme Art Rider specifies details unique to each additional location.
The Extreme Art Rider is used to designate the approved location for each additional Extreme Art Studio business. It also confirms the territory for the additional franchise, ensuring it conforms to the guidelines outlined in Item 12 of the Franchise Disclosure Document. The Rider confirms that Extreme Art Studio Franchising will provide pre-opening and ongoing services related to the Rider Business, as detailed in the Franchise Agreement.
Importantly, the Extreme Art Rider's term is tied 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 the Franchise Agreement. This means that the rights and obligations under the Rider are directly linked to the overall Franchise Agreement, ensuring consistency and compliance across all Extreme Art Studio locations operated by the franchisee. The franchisee must sign the current form of the Extreme Art Rider for each additional franchise, acknowledging that the terms may differ from the initial Rider included in the Franchise Agreement.