Must an Extreme Art Studio franchisee use Extreme Art Studio's 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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees must include specific terms and conditions in their studio leases, utilizing the franchisor's current lease addendum. Extreme Art Studio must approve the location before the franchisee enters into any lease agreement. Furthermore, the franchisee cannot finalize any lease until Extreme Art Studio provides written consent.
This requirement ensures that all Extreme Art Studio locations meet the brand's standards and protects the franchisor's interests. However, the FDD also states that Extreme Art Studio's approval and assistance during lease negotiations do not guarantee the most favorable lease terms for the franchisee's territory. The franchisee bears the responsibility of investigating the suitability of the studio location.
Prospective Extreme Art Studio franchisees should be aware that lease agreements may require personal guarantees from the franchisee, their owners, and their spouses. Franchisees are also responsible for ensuring their studios comply with all applicable federal, state, and local laws, including ADA and safety requirements. These stipulations highlight the importance of careful due diligence and legal counsel when securing a location for an Extreme Art Studio franchise.