Must an Extreme Art Studio franchisee obtain written approval from Extreme Art Studio before leasing or purchasing a site?
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.
You may not enter into a lease for a Studio until we approve such location.
The lease must include the terms and conditions that we require from time to time, including those found in our current form of lease addendum.
You may not enter into any lease until we consent in writing to the lease agreement.
You must enter into a lease for the Extreme Art Studio Business within six months after the Effective Date.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, a franchisee must obtain written approval from Extreme Art Studio before leasing or purchasing a site for their studio. Extreme Art Studio provides assistance with site selection, evaluation, lease review, and construction project management, as outlined in the Franchise Operations Manual.
Extreme Art Studio also provides mandatory and suggested criteria for studio locations. While Extreme Art Studio may inspect a proposed studio site, their approval is solely for their own purposes to ensure the site meets their current criteria. This approval does not constitute a warranty of the studio's suitability, and franchisees are responsible for their own independent investigation of a site's potential.
The franchisee cannot enter into a lease until Extreme Art Studio approves the location and consents to the lease agreement in writing. The lease must include terms and conditions required by Extreme Art Studio, potentially including a personal guarantee from the franchisee and their spouse. The franchisee must enter into a lease within six months of the effective date of the franchise agreement.