Is the Extreme Art Rider a standalone agreement for Extreme Art Studio?
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 not a standalone agreement. It is tied to the main Franchise Agreement. Specifically, the Extreme Art Rider is required when a franchisee intends to open subsequent Extreme Art Studio businesses under a Standard Franchise (Multi-2 or Multi-3). The obligations outlined in the Franchise Agreement apply individually to each Extreme Art Studio Business operated by the franchisee.
The Extreme Art Rider outlines specific details relevant to the additional Extreme Art Studio location, such as the Approved Location. The Approved Location for the initial Extreme Art Studio Business is designated in Attachment B of the Franchise Agreement, while the Approved Location for any additional Extreme Art Studio Businesses will be specified in the Extreme Art Rider applicable to that location. The Extreme Art Rider also specifies the territory for the additional location, conforming to territory guidelines outlined in Item 12 of the Franchise Disclosure Document.
Furthermore, the Extreme Art Rider's term is dependent on the Franchise Agreement. The Rider terminates upon the termination or expiration of the Franchise Agreement, or upon the transfer of the Rider Business in compliance with the Franchise Agreement. The Extreme Art Rider is also subject to the renewal provisions of the Franchise Agreement. This close relationship underscores that the Extreme Art Rider is an extension of, and dependent on, the overarching Franchise Agreement, rather than a separate, independent contract.