What does the Extreme Art Studio Franchise Agreement say about 'INITIAL AND ONGOING TRAINING'?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ds due to insufficient funds, stop payment instructions or any similar event, you shall also pay, upon demand, a non-sufficient funds fee of $100 per incident.
4. TRAINING AND ASSISTANCE.
4.1 INITIAL AND ONGOING TRAINING.
4.1.1 We will train up to two people, which must include you (or your Operating Owner, if you are an Entity) and your Designated Manager (defined in Section 8.55 below), if applicable, in the material aspects of operating an Extreme Art Studio Business, at no charge for your first Extreme Art Studio Business you open, so long as all such persons attend training at the same time ("Initial Training Program"). We will provide the Initial Training Program at either our designated training facility in Minneapolis, Minnesota, such other location we designate or virtually. You may not begin your Extreme Art Studio Business until you (or your Operating Owner, if you are an Entity) and your Designated Manager, if any, complete our Initial Training Program to our satisfaction. If we determine that you (or your Operating Owner) or any Designated Manager cannot complete the Initial Training Program to our satisfaction, we may require your Operating Owner and/or Designated Manager to attend the Initial Training Program again in accordance with Section 4.1.2 or appoint a new Operating Owner and/or Designated Manager and send those individual(s) to the next available Initial Training Program, at your expense. If the Initial Training Program is not completed to our satisfaction after two attempts, we may terminate this
Franchise Agreement. You may invite additional employees to attend the Initial Training Program if space allows, though we will charge you our then-current training fee for each additional attendee. We reserve the right to limit the number of attendees for the Initial Training Program and the right to vary the length and content of the Initial Training Program as we deem appropriate in our sole discretion based on the experience of the attendee. We shall determine the scheduling, exact duration, contents and manner of the Initial Training Program in our discretion and may delay your attendance until a suitable time near the grand opening date for your Franchised Business in our discretion.
- 4.1.2 In the event that you (or your Operating Owner or any Designated Manager) fail to complete the Initial Training Program or On-Site Training to our satisfaction, we reserve the right to require such individual to attend additional training, and we will charge you our thencurrent training fee for such additional training (currently $200 per person per day). Such additional training will be provided at our offices in Minneapolis, Minnesota, at such location we designate or virtually. We may, but are not obligated to, provide you with additional training at your Studio, and charge you our then-current off-site training fee, plus our instructor's travel and living expenses. If you (or your Operating Owner) or any Designated Manager are unable to complete the additional training to our satisfaction, we reserve the right, in our sole discretion, to terminate this Franchise Agreement.
- 4.1.3 If you will operate an Extreme Art Studio Businesses, before you begin providing services from your Approved Location, we will provide an on-site training program for up to three days before your grand opening at your Approved Location ("On-Site Training") for your first Extreme Art Studio Business. We will provide up to two additional days of additional on-site assistance ("Additional On-Site Assistance") approximately six months following the grand opening of your Approved Location for your first Extreme Art Studio Business Such On-Site Trainings and Additional On-Site Assistance will be provided at no charge for the first Extreme Art Studio Business you open. If you request, and we agree to provide, On-Site Training or Additional On-Site Assistance for additional Extreme Art Studio Businesses, you shall pay us our then-current training fees (currently $200 per person per day).
- 4.1.4 You (or your Operating Owner) or any Designated Manager may request additional training in the operation of an Extreme Art Studio Business. We and you will jointly determine the duration of this additional training, and we reserve the right to charge you our thencurrent training fee for such additional training (currently $200 per person per day). However, if your attendees satisfactorily complete our Initial Training Program and have not expressly informed us at the end of the program that they do not feel sufficiently trained in the operation of an Extreme Art Studio Business, then you and they will be deemed to have been trained sufficiently to operate an Extreme Art Studio Business.
- 4.1.5 We may require you (or your Operating Owner) or any Designated Manager, and/or certain other employees of the Franchised Business to attend various training courses, meetings, conferences and seminars, which may include an annual meeting of franchise owners, at the times and locations that we designate; provided that we will not require physical attendance at such events for more than a total of ten business days per calendar year. We may charge you our then-current fee (currently $2,000 for up to two attendees of which $500 is credited back if at least one person attends), plus expenses; and our then-current fee for each additional attendee (currently $500), for any conference or convention, regardless of whether or not you attend the conference. If you purchase more than one Extreme Art Studio Business, you must send up to two attendees total to the conventions and conferences, and you may send more attendees if you pay the additional convention fee for additional attendees. We may preclude you from attending any course or
conference if you are in default of this Franchise Agreement at the time of the course or conference, or if you have had two notices of default within 12 months prior to the course or conference. Notwithstanding the foregoing, you acknowledge and agree that we may require the individuals described above to participate in additional meetings or training through the Internet or other electronic means.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio provides initial and ongoing training to its franchisees. The franchisor will train up to two people, including the franchisee (or the Operating Owner) and the Designated Manager, at no charge for the first Extreme Art Studio Business, provided they attend the training simultaneously. This Initial Training Program takes place at the franchisor's designated training facility in Minneapolis, Minnesota, another designated location, or virtually. Franchisees cannot commence business operations until they (or their Operating Owner) and Designated Manager complete the Initial Training Program to the franchisor's satisfaction. If an individual fails to complete the initial training satisfactorily, Extreme Art Studio may require them to attend additional training or appoint a new Operating Owner or Designated Manager, at the franchisee's expense. Failure to complete the Initial Training Program after two attempts may result in termination of the Franchise Agreement.
The Extreme Art Studio franchise agreement also states that additional employees may attend the Initial Training Program if space is available, but the franchisee will be charged the then-current training fee for each additional attendee. The franchisor reserves the right to limit the number of attendees, as well as to modify the length and content of the Initial Training Program based on the attendee's experience. The franchisor determines the scheduling, duration, contents, and manner of the Initial Training Program and may delay attendance until a suitable time near the grand opening date.
In addition to the initial training, Extreme Art Studio provides an on-site training program for up to three days before the grand opening at the franchisee's Approved Location for their first Extreme Art Studio Business. The franchisor also provides up to two additional days of on-site assistance approximately six months following the grand opening of the first location. These on-site trainings and additional on-site assistance are provided at no charge for the first Extreme Art Studio Business. If the franchisee requests on-site training or additional on-site assistance for additional Extreme Art Studio Businesses, they must pay the then-current training fees, which are currently $200 per person per day. Franchisees may also request additional training in the operation of an Extreme Art Studio Business, with the duration jointly determined by the franchisor and franchisee, and the franchisee will be charged the then-current training fee for such additional training, also currently $200 per person per day.
Franchisees are responsible for all travel and living expenses incurred during attendance at any conferences, seminars, annual meetings, and/or training courses and programs. The franchisor may preclude a franchisee from attending any course or conference if they are in default of the Franchise Agreement or have had two notices of default within 12 months prior to the course or conference. The franchisor may also require individuals to participate in additional meetings or training through the Internet or other electronic means. While the franchisor may provide specific ongoing training or guidance, they are not obligated to continue providing such specific training or guidance and may discontinue and modify it from time to time. The franchisor will provide limited training on the Extreme Art Studio System and brand standards to the franchisee's employees, but the franchisee is responsible for training their employees and independent contractors, including training on the day-to-day operations of the Extreme Art Studio Business.