Is an Extreme Art Studio franchisee allowed to issue coupons or discounts without approval?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.2.2 You agree, at your sole cost and expense, to issue and offer such rebates, giveaways and other promotions in accordance with advertising programs established by us, and further agree to honor the rebates, giveaways and other promotions issued by other Extreme Art Studio franchisees under any such program, so long as such compliance does not contravene any applicable law, rule or regulation. You will not create or issue any gift cards/certificates, and will only sell gift cards/certificates that have been issued or sponsored by us and which are accepted at all Extreme Art Studio Businesses, and you will not issue coupons or discounts of any type except as approved by us.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees are not allowed to independently issue coupons or discounts. Specifically, franchisees cannot issue coupons or discounts of any type unless they have received prior approval from Extreme Art Studio.
However, franchisees are required to issue and offer rebates, giveaways, and other promotions if they are in accordance with advertising programs established by Extreme Art Studio. Franchisees must also honor the rebates, giveaways, and other promotions issued by other Extreme Art Studio franchisees under any such program, as long as compliance does not violate any applicable law, rule, or regulation.
This policy ensures that all promotional activities align with Extreme Art Studio's overall marketing strategy and brand standards. It also prevents unauthorized discounts that could negatively impact the brand's profitability or perceived value. Franchisees should seek written approval before implementing any coupon or discount programs to avoid violating the franchise agreement.