What information does Attachment C to the Extreme Art Studio Franchise Agreement contain?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Owner ceases to own at least a fifty-one percent (51%) ownership interest in you, you must deliver to us a revised Attachment C to accurately identify the Operating Owner for our review and approval, as otherwise required by this Franchise Agreement; and
1.3.6 The Operating Owner is authorized to deal with us on your behalf in respect of all matters whatsoever which may arise in respect of this Franchise Agreement, and any decision made by the Operating Owner will be final and binding upon you. We will be entitled to rely solely upon the decision of the Operating Owner in any such dealings without the necessity of any discussions with any other party named in this Franchise Agreement, and we will not be held liable for any actions taken by you or otherwise, based upon any decision or actions of the Operating Owner.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Attachment C to the Franchise Agreement is related to the Operating Owner of the franchise. Specifically, if the owner of the Extreme Art Studio franchise ceases to own at least 51% ownership interest in the franchise, a revised Attachment C must be delivered to Extreme Art Studio Franchising, LLC. This revision should accurately identify the Operating Owner for review and approval by the franchisor.
The Operating Owner is authorized to act on behalf of the franchisee in all matters related to the Franchise Agreement. Extreme Art Studio Franchising, LLC, is entitled to rely solely on the decisions of the Operating Owner without needing to consult with any other party named in the Franchise Agreement. Furthermore, the franchisor will not be held liable for any actions taken by the franchisee based on the decisions or actions of the Operating Owner.
This clause ensures that Extreme Art Studio Franchising, LLC, always has a clear point of contact and decision-maker for each franchise location, especially in cases where ownership changes or is distributed among multiple parties. For a prospective franchisee, this means understanding the importance of the Operating Owner role and ensuring that the designated individual is capable and authorized to make binding decisions for the franchise.