Does an Extreme Art Studio franchisee receive an exclusive territory?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Extreme Art Studio grants a territory defined by an approximate four-mile radius around the franchisee's location, this territory is not exclusive.

The FDD specifies that franchisees may face competition from other Extreme Art Studio businesses located outside their territory, as well as from other distribution channels or competitive brands controlled by Extreme Art Studio or its affiliates. Extreme Art Studio retains the right to establish other Extreme Art Studio businesses or similar businesses under different trademarks outside the franchisee's territory. They can also sell products and services through alternative channels, such as the internet or wholesale, within or outside the territory.

Furthermore, the FDD states that if there is a Kidcreate Studio franchise in the Extreme Art Studio franchisee's territory, that Kidcreate Studio franchise may offer identical curriculum under the Modules that the Extreme Art Studio franchisee will offer under the Modules. This lack of exclusivity means that a franchisee's business can be directly impacted by other franchises or business channels, requiring them to compete for customers within their defined area.