Does Extreme Art Studio have mandatory standards for franchisees?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We will provide mandatory and suggested standards, specifications, operating procedures and rules ("System Standards") that we periodically prescribe for operating an Extreme Art Studio Business, and information on your other obligations under this Franchise Agreement, which may include, but are not limited to: (1) standards, specifications, and operating procedures and methods that Extreme Art Studio Businesses use, including, but not limited to, scheduling and managing classes; (2) customer service standards and policies; (3) qualifications for other employees, including criminal background checks (although you will have sole responsibility and authority concerning employee selection and promotion); (4) staffing levels, training, dress and appearance of your employees; (5) amounts and types of classes to be offered, including lesson class sizes; (6) days and hours of operation; (7) supplies, equipment and inventory management; (8) use and display of the Marks at the Franchised Business and on Operating Assets and other materials; (9) sales, marketing, advertising, and promotional strategies and programs, and materials/media used in these programs; (10) recommended liability waiver forms for customers; (11) use and acceptance of gift cards, loyalty programs, coupons, passes, certificates and discounts; (12) policies regarding credit and debit cards, credit card vendors (including, among other things, companies that provide services for electronic payment such as near field communication vendors like "Apple Pay" and "Google Wallet"), electronic payment, other payment systems, and check verification services, including compliance with the then-current Payment Card Industry Data Security Standards, as those standards may be revised and modified by the PCI Security Standards Council, LLC or any successor organization, or standards that we may reasonably specify; (13) required and recommended associations and memberships; (14) participation in market research and testing and product and service development programs, as well as participation in, and dues assessed for, advisory councils; and (15) administrative, accounting, reporting and record retention.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio does provide both mandatory and suggested standards, specifications, operating procedures and rules, which they term "System Standards", for franchisees operating an Extreme Art Studio Business. These standards are periodically prescribed by Extreme Art Studio.
The System Standards cover a wide array of operational aspects. These include, but are not limited to, scheduling and managing classes, customer service standards, employee qualifications (including background checks), staffing levels, employee dress and appearance, the types and amounts of classes offered, hours of operation, and supplies and equipment management. Franchisees must also adhere to Extreme Art Studio's standards for the use and display of trademarks, sales, marketing, advertising strategies, recommended liability waiver forms, and the acceptance of gift cards and other promotional programs.
Furthermore, the System Standards extend to technology and payment processing, encompassing policies regarding credit and debit cards, electronic payment systems, and compliance with data security standards. They also include required and recommended associations and memberships, participation in market research, and administrative, accounting, and reporting requirements. These standards are detailed in the Franchise Operations Manual, which Extreme Art Studio may modify periodically to reflect changes in the System Standards. Franchisees are responsible for monitoring updates to the manual and adhering to its contents to maintain uniform quality and protect the brand's reputation.