How does a franchisee renew their right to operate the Extreme Art Studio Rider Business?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Rider and the franchisee's right to operate the Rider Business are tied to the status of the main Franchise Agreement. Specifically, the Rider Business terminates upon the termination or expiration of the Franchise Agreement, or if the Rider Business is transferred in accordance with the Franchise Agreement's provisions. This holds true regardless of when the Extreme Art Rider was initially executed.

To renew the right to operate the Extreme Art Studio Rider Business, franchisees must adhere to the renewal provisions outlined in Section 13 of the Franchise Agreement. This means that the ability to continue the Rider Business is directly linked to the franchisee's eligibility and actions related to renewing the overarching Franchise Agreement.

To acquire a successor franchise, the franchisee must meet certain conditions, including substantial compliance with the Franchise Agreement during its term, full compliance with the agreement and all System Standards at the time of renewal, updating operating assets if requested, paying a successor franchise fee equal to 10% of the then-current initial franchise fee (or the most recent fee if franchises are not currently being offered), and retaining or securing rights to use approved studio locations.