Is an Extreme Art Studio franchisee's site selection based on their own independent investigation?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1.1 You are responsible for selecting each Studio location for the Extreme Art Studio Business.
We will provide you with assistance, including site selection, site evaluation, lease review, and construction project management for any Extreme Art Studio Business, as outlined in the Franchise Operations Manual.
You may not lease or purchase a site for your Extreme Art Studio Business until after we have approved the site in writing.
We will provide you with mandatory and suggested criteria for Studio locations for the Extreme Art Studio Business.
We may inspect a Studio that you propose before we grant our approval.
You acknowledge and agree that our approval of any Studio is merely our determination, entirely for our own purposes, that the Studio site meets our current criteria.
Our consent does not constitute a representation or warranty of any kind, express or implied, of the Studio's suitability, and you confirm that you have not relied, and will not rely, on our approval for that purpose.
You recognize that demographic and/or other factors could change at any time before or during the term of this Franchise Agreement, altering the Studio's potential and suitability.
Your selection of the Studio is based on your own independent investigation of, or agreement in the future to investigate, the Studio's suitability.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees are responsible for selecting the location for their studio. While Extreme Art Studio will provide assistance with site selection, evaluation, lease review, and construction project management, the final selection must be approved in writing by Extreme Art Studio. The franchisor also provides mandatory and suggested criteria for studio locations and may inspect potential sites before granting approval.
However, Extreme Art Studio's approval of a site does not constitute a warranty of its suitability. The FDD emphasizes that the franchisee's site selection should be based on their own independent investigation of the location's potential. Demographic and other factors can change, affecting the studio's suitability, and the franchisee acknowledges that they are not relying on Extreme Art Studio's approval as a guarantee of success.
This means that while Extreme Art Studio offers support in the site selection process, the ultimate responsibility and risk lie with the franchisee. It is crucial for prospective franchisees to conduct thorough due diligence, including market research and financial analysis, to ensure the chosen location is viable for their Extreme Art Studio business. Franchisees should not solely rely on the franchisor's approval but should make their own informed decisions based on their independent investigation.