Can an Extreme Art Studio franchisee deviate from the specified methods, standards, and specifications?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
pecifications
You must operate your Extreme Art Studio Business according to our System and specifications. This includes purchasing or leasing all products, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate related to establishing and operating the Extreme Art Studio Business under our specifications, which may include purchasing these items from: (1) our designees, (2) approved suppliers, and/or (3) us or our affiliates. You must not deviate from these methods, standards, and specifications without our prior written consent, or otherwise operate in any manner which reflects adversely on our Marks or the System.
Our confidential franchise operations manual ("Franchise Operations Manual") states our standards, specifications, and guidelines for all products and services we require you to obtain in establishing and operating your Extreme Art Studio Business, and approved vendors for these products and services. We will notify you of new or modified standards, specifications, and guidelines through periodic amendments or supplements to the Franchise Operations Manual or through other written communication (including electronic communication, such as email, or through a system-wide intranet). The Franchise Operations Manual contains mandatory and suggested standards, specifications, operating procedures, and rules ("System Standards").
Designated and Approved Suppliers
You must purchase or lease approved brands, types, or models of products, services, supplies, operating assets, or other items only from suppliers we designate or approve. If we designate products and services to be purchased through approved and/or designated third-party suppliers, then you will purchase those products and services from the designated suppliers in compliance with the terms and in the manner approved by us or our affiliates. Our affiliates or we may be a designated or approved supplier or distributor, or otherwise be a party to these transactions.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees must operate their business according to the Extreme Art Studio system and specifications. This encompasses purchasing or leasing all products, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate related to establishing and operating the Extreme Art Studio Business under their specifications. These items may be purchased from Extreme Art Studio's designees, approved suppliers, and/or Extreme Art Studio or its affiliates.
The FDD states that franchisees must not deviate from the methods, standards, and specifications outlined by Extreme Art Studio without prior written consent. Deviation from these standards or operating in a manner that reflects negatively on the Extreme Art Studio marks or system is prohibited. The confidential franchise operations manual details the standards, specifications, and guidelines for all products and services franchisees are required to obtain. Extreme Art Studio will communicate any new or modified standards through amendments or supplements to the Franchise Operations Manual or via other written communication.
If a franchisee wishes to purchase or use products, services, operating assets, or materials that have not been approved or from an unapproved supplier, they must submit a written request for approval. Extreme Art Studio reserves the right to charge a new product/supplier application fee and require reimbursement for expenses related to the evaluation, including research, inspection, and testing costs. Extreme Art Studio has the right to inspect the supplier's facilities and require product samples for testing. The franchisee will be notified in writing of the approval or rejection of the proposed supplier within a reasonable time after the investigation. If Extreme Art Studio fails to respond within 60 days, the request is deemed denied. Extreme Art Studio may reject a request without investigation if the proposed supplier is for items bearing their marks or if an exclusive supplier has already been designated for the item.