What is the length of the additional term for a successor Extreme Art Studio franchise?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees who meet certain conditions have the option to acquire a successor franchise upon the expiration of their original franchise agreement. This successor franchise grants the right to operate an Extreme Art Studio business for an additional term of ten years.

To qualify for a successor franchise, the franchisee must substantially comply with the existing Franchise Agreement during its term. Additionally, the franchisee must be in full compliance with the Franchise Agreement and all System Standards both when providing written notice of their intent to acquire a successor franchise and when the successor franchise term commences. The franchisee may also be required to update or replace operating assets if requested by Extreme Art Studio.

Furthermore, the franchisee must pay a successor franchise fee equal to ten percent of the then-current initial franchise fee for new franchises. If Extreme Art Studio is not offering franchises at the time of renewal, the fee will be ten percent of the initial franchise fee listed in the most recent franchise disclosure document. The franchisee must also retain the rights to use the studio, renew their lease agreements, or secure rights to use a substitute studio approved by Extreme Art Studio, adhering to the System Standards applicable at that time.