Is the Extreme Art Rider a required document for all Extreme Art Studio franchisees?
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.
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 required in specific circumstances. If a franchisee purchases a Standard Franchise (Multi-2 or Multi-3), they will need to execute an Extreme Art Rider before opening the second and each subsequent Extreme Art Studio Business. The document specifies that the Extreme Art Rider form attached to the Franchise Agreement may not be the current form and could vary materially.
For franchisees purchasing a Single Franchise, the FDD states that they will not be required to pay a separate Initial Franchise Fee when they sign the Extreme Art Rider, but all other fees will apply. This implies that even Single Franchise owners will at some point be required to sign the Extreme Art Rider.
In summary, while not explicitly stated as a requirement for all franchisees upfront, the Extreme Art Rider appears to be a standard document that franchisees will encounter, especially those expanding beyond a single unit under a Standard Franchise agreement. Prospective franchisees should carefully review the terms of the Extreme Art Rider and understand how it affects their obligations and rights, particularly regarding fees and operational requirements for additional locations.