Can an Extreme Art Studio franchisee lease or purchase a site before receiving written approval from Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not lease or purchase a site for your Extreme Art Studio Business until after we have approved the site in writing.
We will provide you with mandatory and suggested criteria for Studio locations for the Extreme Art Studio Business.
We may inspect a Studio that you propose before we grant our approval.
You acknowledge and agree that our approval of any Studio is merely our determination, entirely for our own purposes, that the Studio site meets our current criteria.
Our consent does not constitute a representation or warranty of any kind, express or implied, of the Studio's suitability, and you confirm that you have not relied, and will not rely, on our approval for that purpose.
You recognize that demographic and/or other factors could change at any time before or during the term of this Franchise Agreement, altering the Studio's potential and suitability.
Your selection of the Studio is based on your own independent investigation of, or agreement in the future to investigate, the Studio's suitability.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, a franchisee cannot lease or purchase a site for their Extreme Art Studio Business until Extreme Art Studio has given written approval of the site. Extreme Art Studio will provide assistance with site selection, site evaluation, lease review, and construction project management, as outlined in the Franchise Operations Manual.
Extreme Art Studio may inspect a proposed studio site before granting approval. However, Extreme Art Studio's approval is solely a determination that the site meets their current criteria and does not constitute a warranty of the site's suitability. The franchisee is responsible for their own independent investigation of the site's suitability.
The franchisee is not guaranteed any specific approved location and may not be able to obtain their top choice. The franchisee and Extreme Art Studio must agree on an approved location within four months of signing the Franchise Agreement. Failure to do so gives Extreme Art Studio the option to terminate the agreement.
This requirement ensures that all Extreme Art Studio locations meet the franchisor's standards before a franchisee commits to a long-term lease or purchase. It protects both the franchisee and the brand by ensuring appropriate locations are selected. Franchisees should carefully review the site selection criteria and utilize the franchisor's assistance to find a suitable location within the given timeframe.