Can an Extreme Art Studio franchisee make any agreements or warranties on behalf of the franchisor?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- a. Although this Agreement is entered into in favor of Extreme Art Studio Franchising, LLC, you understand and acknowledge that your employer/employee, independent contractor, agent, representative, or supplier relationship is with Franchisee and not with us, and for all purposes in connection with such relationship, you will look to Franchisee and not to us.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the franchisee for Extreme Art Studio acknowledges that their relationship with employees, independent contractors, agents, representatives, or suppliers is with the franchisee, not with Extreme Art Studio Franchising, LLC. For all matters related to these relationships, these parties will look to the franchisee, not to the franchisor.
This means that as an Extreme Art Studio franchisee, you are responsible for managing your own business relationships and cannot make agreements or warranties on behalf of Extreme Art Studio Franchising, LLC. This protects the franchisor from liabilities or obligations created by the franchisee's actions.
This type of clause is standard in franchise agreements. It ensures that the franchisee operates as an independent entity and is responsible for its own business operations, while the franchisor maintains control over the brand and system standards. It is important for a prospective franchisee to understand this distinction and to manage their business relationships accordingly.