How can the Extreme Art Studio franchise agreement be modified?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Module Amendment to the Franchise Agreement (the "Module Amendment") is made and entered into this between Extreme Art Studio Franchising, LLC, a Minnesota limited liability company ("Franchisor"), and [franchisee name], a [state and entity type] (referred to herein as "Franchisee"). |
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| RECITALS |
| WHEREAS, on [date], Franchisor and Franchisee entered into a franchise agreement (the "Franchise Agreement") pursuant to which Franchisee is granted the right, and undertook the obligation, to open and operate a Extreme Art Studio franchised business using either: (i) an in-studio format operated from a location; (ii) a mobile unit location; or (iii) a remote format that does not have a physical location as indicated in the Franchise Agreement (the "Extreme Art Business"); |
| WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below. |
| WHEREAS, Franchisee and Franchisor are entering into this Module Amendment in order to add the Module(s) indicated below to the Franchise Agreement. Capitalized terms not defined herein shall have the meaning set forth in the Franchise Agreement. |
| NOW THEREFORE, in consideration of the mutual agreements, covenants and promises contained in this Module Amendment and for mutual consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows: |
| 1. RECITALS . The Recitals set forth above are hereby incorporated into the terms of this Module Amendment as if fully restated herein. |
| 2. MODULE SELECTION AND INITIAL MODULE FEE . Franchisee wishes to add the services and offer the Module(s) through the Extreme Art Business in accordance with the terms of this Module Amendment. The Module(s) that Franchisee desires to add to the Extreme Art Business are as follow |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchise agreement can be modified through a Module Amendment. This amendment allows a franchisee to add one or more service modules to their Extreme Art Studio business. The Module Amendment is entered into by Extreme Art Studio Franchising, LLC and the franchisee, referencing the original franchise agreement and acknowledging the franchisee's desire to incorporate additional service modules.
The Module Amendment includes recitals that are incorporated into its terms, indicating the mutual agreements, covenants, and promises made by both parties. By signing the Module Amendment, the franchisee can offer additional services through their Extreme Art Studio business, expanding the scope of their operations.
This process ensures that any changes to the original franchise agreement are formally documented and agreed upon by both Extreme Art Studio and the franchisee. The amendment outlines the specific modules being added and any associated terms, providing clarity and legal certainty for both parties. This allows Extreme Art Studio franchisees to adapt and expand their service offerings while remaining within the bounds of the franchise agreement.