Must an Extreme Art Studio franchisee use Extreme Art Studio's current form of lease addendum?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Neither our approval nor any guidance and assistance that we provide or have provided in connection with your negotiation of the lease constitute a guarantee or warranty, express or implied, that the terms of the lease represent the most favorable terms available in your Territory.
You must enter into a lease for the Extreme Art Studio Business within six months after the Effective Date.
You acknowledge that any lease you sign for the Extreme Art
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees must adhere to specific lease requirements. Before entering into a lease for a studio location, Extreme Art Studio requires franchisees to obtain approval of the location. The lease agreement itself must include terms and conditions that Extreme Art Studio requires, including those outlined in their current form of lease addendum. Franchisees cannot finalize any lease agreement without written consent from Extreme Art Studio.
While Extreme Art Studio may offer guidance and assistance during lease negotiations, this does not guarantee the most favorable lease terms. Franchisees are responsible for conducting their own due diligence to ensure the lease terms are suitable for their business needs. Additionally, the lease signed for the Extreme Art Studio Business may require the franchisee, their owners, and their respective spouses to sign a personal guarantee.
These stipulations ensure that Extreme Art Studio maintains control over the locations and lease terms of its franchises, which can impact brand consistency and operational standards. Prospective franchisees should carefully review the lease addendum and seek legal counsel to fully understand their obligations and potential liabilities under the lease agreement.