What is involved in the establishment of a business form for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, EAS is not required to provide you with any assistance.
Pre-opening Obligations
Before you open your Extreme Art Studio Business, we (or our designee(s)) will provide the following assistance and services to you:
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- Provide you with assistance, including site selection, site evaluation, lease review and construction project management for an Extreme Art Studio Business, as we have outlined in our Franchise Operations Manual (See Franchise Agreement – Section 2.1 and Extreme Art Rider).
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- Review your lease agreement for the Studio to ensure that its terms contain our required provisions and otherwise meet our minimum standards for an Extreme Art Studio Business (See Franchise Agreement – Section 2.1 and Extreme Art Rider).
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- Provide you with specifications for all initial and replacement furniture, fixtures, equipment, signs, inventory and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing that are required to operate your Extreme Art Studio Business. We do not deliver or assist with the installation of any fixtures, furnishings, equipment, signs or other supplies. (See Franchise Agreement – Sections 2.2 and 8.4).
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- We will also provide you with a schematic design review for your Extreme Art Studio Business. You must submit final construction plans and specifications to us for our approval before you
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchisor, EAS, is not required to provide assistance in establishing a business form, except as listed in Item 11. However, EAS does provide assistance in other areas to help get the business established.
Extreme Art Studio provides franchisees with pre-opening assistance such as site selection, site evaluation, lease review, and construction project management, as outlined in their Franchise Operations Manual. They also review the franchisee's lease agreement to ensure it meets their minimum standards and contains required provisions. Additionally, Extreme Art Studio provides specifications for initial and replacement furniture, fixtures, equipment, signs, inventory, and supplies. They also offer a schematic design review for the studio, requiring franchisees to submit final construction plans for approval.
While Extreme Art Studio consults on the site and assists in finding an acceptable location, the franchisee has the ultimate responsibility for choosing, obtaining, and developing the site. The franchisee is responsible for conforming the premises to local ordinances and building codes, obtaining required permits, and managing construction, remodeling, and decorating, for which the franchisor does not provide assistance. Franchisees must begin offering services within 12 months of signing the Franchise Agreement, and failure to open within this timeframe may result in termination of the agreement or the need to pay an "Opening Extension Fee" of $1,000 per month until the studio opens or the agreement is terminated.