Does the Extreme Art Rider require any specific actions from 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.
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 requires franchisees to take several specific actions. Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, both the franchisee and Extreme Art Studio will execute the then-current form of the Extreme Art Rider. Franchisees must also adhere to the terms of the franchise agreement for each additional franchise they open under the Extreme Art Riders.
Franchisees are responsible for selecting each Approved Location for their Extreme Art Studio Businesses and negotiating the lease or purchase terms. Franchisees must reach an agreement with Extreme Art Studio on an Approved Location for their studio within four months of signing the Franchise Agreement, or Extreme Art Studio has the option to terminate the agreement.
Additionally, if the Operating Owner ceases to own at least 51% ownership in the franchise, the franchisee must deliver a revised Attachment C to accurately identify the Operating Owner for Extreme Art Studio's review and approval. Franchisees operating an Extreme Art Studio Business must begin operating at their Approved Location within twelve months of signing the Franchise Agreement (or 12 months after signing the Extreme Art Rider for subsequent locations). Failure to do so results in paying an Opening Extension Fee until the location opens or the Extreme Art Rider is terminated.