What kind of supervision is required for the Extreme Art Studio Business?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You must identify one of your owners who is a natural person with at least 51% ownership interest and voting power in you and who will have the authority of a chief executive officer ("Operating Owner"). You (or your Operating Owner) are responsible for the day-to-day management, direction, and control of your Extreme Art Studio Business, subject to the terms and conditions of the Franchise Agreement. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to supervise the day-to-day operations of the Extreme Art Studio Business. The Designated Manager must
successfully complete our Initial Training Program. The Designated Manager need not have an ownership interest in the franchisee entity. If, at any time during the term of the Franchise Agreement, you replace your Operating Owner and/or Designated Manager, that replacement must attend and successfully complete the first available Initial Training Program. You will be charged a training fee for each and every replacement Operating Owner and/or Designated Manager and will be responsible for all costs for airfare, ground transportation, lodging, meals and expenses. You (or your Operating Owner) or your Designated Manager (if any) must continuously exert your (or his or her) best efforts to promote and enhance your Extreme Art Studio Business. Your Extreme Art Studio Business must always be under your (or your Operating Owner's) or your Designated Manager's (if any) direct, full-time supervision. You agree to require any other employee who has access to our Confidential Information to sign the confidentiality and non-competition agreements attached to the Franchise Disclosure Document in Exhibit H.
In the event that your Operating Owner ceases to own at least a 51% ownership interest in you, you must recruit a new Operating Owner within 30 days of the change in ownership and submit the identity of the new Operating Owner to us for our review and approval and comply with any applicable transfer requirements. If you appoint a new Operating Owner after you begin operating your Extreme Art Studio Business, the Operating Owner must complete the Initial Training Program within 30 days after the date of appointment. You must keep us informed at all times of the identity of the Operating Owner.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Studio Business must always be under direct, full-time supervision. This supervision can be provided either by the franchisee (or their Operating Owner) or by a Designated Manager.
If the franchisee chooses to appoint a Designated Manager, that manager must successfully complete the Initial Training Program. The Designated Manager is not required to have an ownership interest in the franchisee entity. If there is a replacement of the Operating Owner or Designated Manager, the replacement must attend and successfully complete the first available Initial Training Program, and the franchisee will be charged a training fee and be responsible for associated costs like airfare, lodging, and meals.
The franchisee must identify an Operating Owner who is a natural person with at least 51% ownership interest and voting power. This Operating Owner is responsible for the day-to-day management, direction, and control of the Extreme Art Studio Business, subject to the terms and conditions of the Franchise Agreement. If the Operating Owner ceases to own at least 51% ownership, a new Operating Owner must be recruited within 30 days, and their identity submitted to Extreme Art Studio for review and approval. The new Operating Owner must complete the Initial Training Program within 30 days of appointment if appointed after the business has begun operating.