Can an Extreme Art Studio Franchise be terminated before its term expires without good cause?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) A provision that permits us to terminate a Franchise prior to the expiration of its term except for good cause.
Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchise agreement cannot be terminated before its expiration date unless there is good cause. Good cause includes the franchisee's failure to comply with any lawful provision of the Franchise Agreement.
Extreme Art Studio must provide written notice of the failure to comply and allow a reasonable opportunity to correct the failure. The cure period does not have to be more than 30 days.
However, the FDD also includes state-specific addenda that may supersede the standard franchise agreement. For example, in Virginia, it is unlawful for a franchisor to cancel a franchise without reasonable cause, and any grounds for default or termination stated in the Franchise Agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable. Similarly, in Washington, the Washington Franchise Investment Protection Act may supersede the franchise agreement regarding termination.