What legal steps are involved in opening an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
providing you a refund.
Although we will consult with you on your site for your Studio, assist you in finding an acceptable location, and require that your site for your Studio be subject to our final authorization, you have the ultimate responsibility in choosing, obtaining, and developing the site for your Studio. You are responsible for conforming the premises to local ordinances and building codes, obtaining the required permits, and constructing, remodeling and decorating the premises. We will not provide assistance for any of these franchisee obligations.
Schedule for Opening
You must begin offering services from the Studio within 12 months of signing the Franchise Agreement. Factors that affect this length of time include securing any necessary financing; selecting the Studio site; negotiating the lease; obtaining necessary permits; completing leasehold improvements; delivery of equipment, inventory and supplies; completing our initial training program; and hiring and training employees, If you fail to open your Extreme Art Studio Business within 12 months of signing the Franchise Agreement or Extreme Art Rider, we may terminate your Franchise Agreement (without providing you a refund) or you will be required to pay us an "Opening Extension Fee" of $1,000 per month until you open or until the Franchise Agreement is terminated.
You may not open your Extreme Art Studio Business until: (1) we notify you in writing that all of your pre-opening obligations have been fulfilled; (2) you have completed the initial training program to our satisfaction and have commenced the on-site assistance program; (3) all amounts due to us have been paid; (4) we have been furnished with copies of all insurance policies and certificates required by the Franchise Agreement, or other documentation of insurance coverage and payment of premiums that we request; (5) you notify us that all approvals and conditions set forth in the Franchise Agreement have been met; (6) you have received all required permits and licenses; and (7) you have ordered, received and installed your equipment, supplies, inventory and computer system. You must be prepared to begin operating your Extreme Art Studio Business after we state that your Extreme Art Studio Business is ready for opening.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees are responsible for several legal and regulatory steps to open their studio. While Extreme Art Studio offers consultation on site selection, the franchisee is ultimately responsible for choosing, obtaining, and developing the site. This includes conforming the premises to local ordinances and building codes and obtaining the required permits. Extreme Art Studio does not provide assistance with these obligations.
Before opening, franchisees must ensure they have met all pre-opening obligations as notified in writing by Extreme Art Studio. This includes completing the initial training program, paying all due amounts, furnishing copies of required insurance policies, and confirming that all conditions set forth in the Franchise Agreement have been met. Additionally, franchisees must have received all required permits and licenses and have ordered, received, and installed all necessary equipment, supplies, inventory, and the computer system.
Franchisees must begin offering services within 12 months of signing the Franchise Agreement. Failure to open within this timeframe may result in termination of the Franchise Agreement or the requirement to pay an "Opening Extension Fee" of $1,000 per month until the studio opens or the agreement is terminated. The franchisee cannot open for business until Extreme Art Studio provides written notification that all pre-opening obligations have been fulfilled.