Does the Extreme Art Studio Franchise Agreement address 'DELEGATION OF PERFORMANCE'?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Owner ceases to own at least a fifty-one percent (51%) ownership interest in you, you must deliver to us a revised Attachment C to accurately identify the Operating Owner for our review and approval, as otherwise required by this Franchise Agreement; and
1.3.6 The Operating Owner is authorized to deal with us on your behalf in respect of all matters whatsoever which may arise in respect of this Franchise Agreement, and any decision made by the Operating Owner will be final and binding upon you. We will be entitled to rely solely upon the decision of the Operating Owner in any such dealings without the necessity of any discussions with any other party named in this Franchise Agreement, and we will not be held liable for any actions taken by you or otherwise, based upon any decision or actions of the Operating Owner.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
Based on the 2024 Extreme Art Studio Franchise Disclosure Document, the agreement outlines the role and authority of an 'Operating Owner.' According to the franchise agreement, if the owner ceases to own at least 51% ownership in the franchise, a revised attachment C must be delivered to Extreme Art Studio to accurately identify the Operating Owner for review and approval.
The agreement specifies that the Operating Owner is authorized to deal with Extreme Art Studio on behalf of the franchisee in all matters related to the Franchise Agreement. Any decision made by the Operating Owner will be considered final and binding upon the franchisee. Extreme Art Studio is entitled to rely solely on the decisions of the Operating Owner without needing to consult with any other party named in the Franchise Agreement.
Furthermore, Extreme Art Studio will not be held liable for any actions taken by the franchisee based on the decisions or actions of the Operating Owner. This clause essentially delegates significant authority to the Operating Owner, allowing them to act on behalf of the franchisee in dealings with Extreme Art Studio, which has important implications for the management and operation of the franchise.