Does the Extreme Art Studio franchisee have the right to manage the day-to-day operations of the Franchised Business?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
8.5 MANAGEMENT OF THE FRANCHISED BUSINESS. You (or your Operating Owner, if you are an Entity) are responsible for the day-to-day management, direction, and control of the Franchised Business, subject to the terms and conditions of this Franchise Agreement. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to supervise the day-to-day operations of the Extreme Art Studio Business. The Designated Manager must successfully complete our Initial Training Program. The Designated Manager need not have an ownership interest in the Franchisee Entity. If, at any time during the term of the Franchise Agreement, you replace your Operating Owner and/or Designated Manager, that replacement must attend and successfully complete the first available Initial Training Program. You will be charged a training fee for each and every replacement Operating Owner and/or Designated Manager and will be responsible for all costs for airfare, ground transportation, lodging, meals and expenses. You (or your Operating Owner) or your Designated Manager (if any) must continuously exert your (or his or her) best efforts to promote and enhance the Franchised Business. The Franchised Business must always be under the direct, full-time supervision of you (or your Operating Owner) or your Designated Manager, if any. You are not required to directly manage and train the teachers; however, you must at all times have a Designated Manager (if someone other than you) who must have satisfactorily completed our Initial Training Program.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the franchisee (or the Operating Owner if the franchisee is an entity) is responsible for the day-to-day management, direction, and control of the franchised business. This is subject to the terms and conditions outlined in the Franchise Agreement. Extreme Art Studio may allow the franchisee to appoint a Designated Manager to supervise the daily operations, provided the manager completes the Initial Training Program. The Designated Manager does not need to have an ownership stake in the franchisee entity.
If the Operating Owner or Designated Manager is replaced, the replacement must attend and successfully complete the Initial Training Program. The franchisee will be charged a training fee for each replacement and is responsible for covering all associated costs like airfare, lodging, and meals. The franchisee (or Operating Owner) or the Designated Manager must continuously work to promote and improve the franchised business.
The franchised business must always be under the direct, full-time supervision of the franchisee (or the Operating Owner) or a Designated Manager. While the franchisee is not required to directly manage and train the teachers, a Designated Manager who has completed the Initial Training Program must be in place if someone other than the franchisee is handling those responsibilities. This ensures that the Extreme Art Studio maintains consistent standards and quality in its operations, regardless of who is directly managing the business.