How does a franchisee gain site selection approval from Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We will provide you with our site selection criteria for you to use to select and acquire a site for your Studio which meets our site selection criteria. You may not lease or purchase a site for your Studio until after we have approved the site in writing. The factors we consider in approving sites for your Studio include location; size; suitability; layout; access and visibility of the proposed location; proximity to other businesses; location and nature of any competitors; population density and demographics; vehicle traffic; pedestrian traffic; existing tenant mix; parking convenience; and other factors that may be relevant to your market. The same site selection criteria will generally be applicable to all Extreme Art Studio Business franchisees. We generally do not own the premises and lease it to you.
There are no deadlines for our approval or disapproval of your proposed Studio site, although we will typically be able to respond within two weeks after you submit to us all of the required information. Once we have approved your location, the Franchise Agreement or applicable Extreme Art Rider will automatically be amended to show the specific location as the only location where you are authorized to
operate the Extreme Art Studio Business. If you and we are not able to reach agreement on an approved site for your Studio within four months after you sign the Franchise Agreement or applicable Extreme Art Rider, then we have the option to terminate the Franchise Agreement without providing you a refund.
You must obtain our prior written approval of your Studio lease. Your Studio lease must meet our lease approval criteria, including certain mandatory lease provisions that we require for our protection. If you fail to enter into a lease for your Extreme Art Studio Business within six months after signing the Franchise Agreement, then we have the option to terminate the Franchise Agreement without providing you a refund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees must adhere to a specific process to gain site selection approval. Extreme Art Studio provides franchisees with its site selection criteria, which must be used to select a location. However, the franchisee cannot finalize the lease or purchase of a site until Extreme Art Studio has given written approval.
The factors that Extreme Art Studio considers for site approval include location, size, suitability, layout, access, visibility, proximity to other businesses, the competitive landscape, population density and demographics, vehicle and pedestrian traffic, the existing tenant mix, parking convenience, and other market-relevant factors. The FDD states that these criteria are generally applicable to all Extreme Art Studio franchisees.
Extreme Art Studio does not provide a specific deadline for site approval but estimates a response time of two weeks after receiving all required information. Once a site is approved, the Franchise Agreement is amended to reflect the approved location. If an agreement on a site cannot be reached within four months of signing the Franchise Agreement, Extreme Art Studio has the option to terminate the agreement without a refund to the franchisee. Additionally, Extreme Art Studio requires prior written approval of the studio lease, which must meet their criteria, including mandatory lease provisions. Failure to secure a lease within six months of signing the Franchise Agreement also gives Extreme Art Studio the option to terminate the agreement without a refund.