What must the franchisee do after recruiting a new Operating Owner for the Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Disclosure Document in Exhibit H.
In the event that your Operating Owner ceases to own at least a 51% ownership interest in you, you must recruit a new Operating Owner within 30 days of the change in ownership and submit the identity of the new Operating Owner to us for our review and approval and comply with any applicable transfer requirements. If you appoint a new Operating Owner after you begin operating your Extreme Art Studio Business, the Operating Owner must complete the Initial Training Program within 30 days after the date of appointment. You must keep us informed at all times of the identity of the Operating Owner.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio FDD, if the Operating Owner no longer holds at least 51% ownership, the franchisee has 30 days to recruit a new Operating Owner. The franchisee must then submit the identity of the new Operating Owner to Extreme Art Studio for review and approval, complying with any applicable transfer requirements.
Furthermore, the new Operating Owner must complete the Initial Training Program within 30 days of their appointment. This ensures the replacement is properly trained in Extreme Art Studio's methods and standards.
Finally, the franchisee must keep Extreme Art Studio informed of the identity of the Operating Owner at all times and deliver a revised Attachment C to accurately identify the Operating Owner for the franchisor's review and approval.