Are Extreme Art Studio's internal policies considered part of the Franchise Agreement?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, while the Franchise Agreement grants Extreme Art Studio certain rights to set standards and guidelines, it does not explicitly state that Extreme Art Studio's internal policies are directly part of the Franchise Agreement itself. However, the document does state that Extreme Art Studio has the right to modify System Standards, which could include policies, and that franchisees are expected to comply with these standards.

Extreme Art Studio's Franchise Agreement states that franchisees are responsible for establishing and implementing their own employment policies and should do so in consultation with local legal counsel. This suggests that while Extreme Art Studio may provide direction or examples regarding employment policies, franchisees are ultimately responsible for their own policies.

While Extreme Art Studio can waive or reduce obligations under the Franchise Agreement, this must be done in writing. Furthermore, the failure of Extreme Art Studio to enforce any right under the Franchise Agreement or insist on compliance does not waive its right to demand exact compliance in the future. This indicates that franchisees should not assume that a lack of enforcement means a policy or standard is no longer in effect. Therefore, prospective franchisees should clarify with Extreme Art Studio which internal policies are considered binding and how they might be updated or changed during the franchise term.