Where can I find the Owners Agreement that owners of Extreme Art Studio must sign?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
or indirect) in or perform services for a Competitive Business;
- (d) the transferee's representatives satisfactorily complete our then-current Initial Training Program;
- (e) the owner of the facility in which each Studio is located allows you to transfer the corresponding lease agreement to the transferee;
- (f) the transferee shall (if the transfer is of this Franchise Agreement), or you shall (if the transfer is of a controlling ownership interest in you or one of your owners), sign our then-current form of franchise agreement and related documents, (including, but not limited to, our then-current form of Owners Agreement) any and all of the provisions of which may differ materially from any and all of those contained in this Franchise Agreement, including the Royalty and the Marketing Fees;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Owners Agreement is mentioned within the context of transferring ownership. Specifically, if a franchisee transfers their franchise agreement or a controlling ownership interest, either the transferee or the franchisee (respectively) must sign Extreme Art Studio's then-current form of franchise agreement and related documents, which includes the Owners Agreement. The FDD indicates that the provisions within this agreement may differ significantly from those in the original Franchise Agreement, including potential changes to Royalty and Marketing Fees.
This implies that the specific form of the Owners Agreement applicable to a new franchisee may not be available until the time of transfer. The document also notes that all individuals and entities who will be direct or indirect owners must execute a guarantee in the form prescribed by Extreme Art Studio.
Prospective franchisees should carefully consider the implications of these potential changes and guarantees, as they could significantly impact the financial obligations and operational requirements of the franchise. It is advisable to seek legal counsel to review the terms of the Owners Agreement and understand the full extent of the obligations and liabilities involved in a transfer scenario.