Who will be included in the Extreme Art Studio advisory council, if formed?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right, at any time, to form one or more advisory councils to assist us in improving products and services, the System, and improving marketing and promotion of Extreme Art Studio Businesses.
If formed, the advisory council will include our representatives and franchisee representatives.
Franchisee representatives may be selected by us or may be elected by other franchisees in the System.
The advisory council will be governed by bylaws.
If you participate in any advisory council, you will pay all expenses you incur related to your participation, such as travel, lodging, and meal expenses related to attending council meetings.
If formed, the advisory council will serve in an advisory capacity only.
We reserve the right to form, change, or dissolve any advisory council at any time.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, if Extreme Art Studio chooses to form an advisory council, it will consist of representatives from Extreme Art Studio itself, as well as franchisee representatives. The franchisee representatives may be selected by Extreme Art Studio or elected by the other franchisees within the Extreme Art Studio system.
It's important to note that participation in the advisory council is not mandatory, and if a franchisee chooses to participate, they will be responsible for covering all associated expenses, including travel, lodging, and meals related to attending council meetings. The FDD also states that the advisory council will serve only in an advisory capacity.
Extreme Art Studio retains the right to form, modify, or dissolve any advisory council at any time, giving them significant control over its existence and composition. This is a fairly standard practice in franchising, as the franchisor typically wants to maintain control over strategic decisions while still gaining input from franchisees. Prospective franchisees should consider the potential benefits and costs of participating in an advisory council if one is formed, and they should also recognize that the franchisor has the ultimate authority in these matters.