What lease considerations are important for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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Site Selection
We will provide you with our site selection criteria for you to use to select and acquire a site for your Studio which meets our site selection criteria. You may not lease or purchase a site for your Studio until after we have approved the site in writing. The factors we consider in approving sites for your Studio include location; size; suitability; layout; access and visibility of the proposed location; proximity to other businesses; location and nature of any competitors; population density and demographics; vehicle traffic; pedestrian traffic; existing tenant mix; parking convenience; and other factors that may be relevant to your market. The same site selection criteria will generally be applicable to all Extreme Art Studio Business franchisees. We generally do not own the premises and lease it to you.
There are no deadlines for our approval or disapproval of your proposed Studio site, although we will typically be able to respond within two weeks after you submit to us all of the required information. Once we have approved your location, the Franchise Agreement or applicable Extreme Art Rider will automatically be amended to show the specific location as the only location where you are authorized to
operate the Extreme Art Studio Business. If you and we are not able to reach agreement on an approved site for your Studio within four months after you sign the Franchise Agreement or applicable Extreme Art Rider, then we have the option to terminate the Franchise Agreement without providing you a refund.
You must obtain our prior written approval of your Studio lease. Your Studio lease must meet our lease approval criteria, including certain mandatory lease provisions that we require for our protection. If you fail to enter into a lease for your Extreme Art Studio Business within six months after signing the Franchise Agreement, then we have the option to terminate the Franchise Agreement without providing you a refund.
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, franchisees must adhere to specific site selection and lease approval criteria. Extreme Art Studio provides franchisees with site selection criteria to aid in acquiring a suitable location, but the franchisee has the ultimate responsibility. The franchisor must provide written approval of the site before the franchisee can proceed with leasing or purchasing. Factors considered for site approval include location, size, suitability, layout, access, visibility, proximity to other businesses, competitors, population density, demographics, traffic, tenant mix, and parking.
Extreme Art Studio does not typically own the premises and lease it to the franchisee. Franchisees must obtain Extreme Art Studio's prior written approval of their studio lease, ensuring it meets the franchisor's criteria, including mandatory lease provisions for their protection. If an agreement on an approved site cannot be reached within four months of signing the Franchise Agreement, Extreme Art Studio has the option to terminate the agreement without a refund.
Furthermore, if a franchisee fails to enter into a lease within six months of signing the Franchise Agreement, Extreme Art Studio can terminate the agreement without providing a refund. Franchisees are also responsible for conforming the premises to local ordinances and building codes, obtaining necessary permits, and handling construction, remodeling, and decorating, without assistance from Extreme Art Studio. These stipulations highlight the importance of aligning site selection and lease terms with Extreme Art Studio's requirements to avoid potential termination of the franchise agreement and loss of investment.