How does the Extreme Art Studio Franchise Agreement define 'owner'?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
d liability company | | | Sign: | | | Name: | | | Title: | | | DATED: | | | FRANCHISE OWNER | FRANCHISE OWNER | | (IF YOU ARE A CORPORATION, LIMITED LIABILITY COMPANY, OR PARTNERSHIP): | (IF YOU ARE AN INDIVIDUAL AND NOT A LEGAL ENTITY): | | (Entity Name) | (Signature) (Print Name) | | Sign: | | | Name: | DATED: | | Title: | | | DATED: | |
ATTACHMENT D
TO THE FRANCHISE AGREEMENT
OWNERS AGREEMENT
| As a condition to the execution by Extreme Art Studio Franchising, LLC ("we" or "us") of a | |
|---|---|
| Franchise Agreement with ("Franchisee"), each of the | |
| undersigned individuals ("Owners"), who constitute all of the owners of a direct or indirect beneficial | |
| interest in Franchisee, as well as their respective spouses , covenant and agree to be bound by this Owners | |
| Agreement ("Owners Agreement"). | |
| 1. | |
| Acknowledgments. | |
| (a) | |
| Franchise Agreement. Franchisee entered into a franchise agreement with us effective as | |
| of, 20 ("Franchise Agreement"). Capitalized words not defined | |
| in this Owners Agreement will have the same meanings ascribed to them in the Franchise Agreement. | |
| (b) | |
| Role of Owners. Owners are the beneficial owners or spouses of the beneficial owners of | |
| all of the equity interest, membership interest, or other equity controlling interest in Franchisee and | |
| acknowledge there are benefits received and to be received by each Owner, jointly and severally, and for | |
| themselves, their heirs, legal representatives and assigns. Franchisee's obligations under the Franchise | |
| Agreement, including the confidentiality and non-compete obligations, would be of little value to us if | |
| Franchisee's owners were not bound by the same requirements. |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the term 'Owners' is specifically defined within the context of the Owners Agreement. This agreement is a condition for Extreme Art Studio Franchising, LLC to execute a Franchise Agreement with a franchisee. The 'Owners' are defined as all individuals who have a direct or indirect beneficial interest in the franchisee. This definition also extends to their respective spouses.
The document emphasizes that these 'Owners' are considered the beneficial owners or spouses of the beneficial owners of all equity, membership, or other equity controlling interest in the franchisee. The agreement acknowledges that each Owner receives benefits, both jointly and severally, and these benefits extend to their heirs, legal representatives, and assigns. This stipulation ensures that the obligations of the franchisee, particularly those related to confidentiality and non-competition, are also binding on the owners themselves.
The Owners Agreement is a mandatory requirement for Extreme Art Studio to enter into a Franchise Agreement with the franchisee. The document clearly states that the Owners will be jointly and severally liable for any breach of the Owners Agreement, reinforcing the importance of their commitment to the terms and conditions outlined in the agreement.