Does the Extreme Art Studio Module Amendment require parties to acknowledge they are entering into it voluntarily?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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IN WITNESS WHEREOF, the parties have executed and delivered this Extreme Art Rider, to be effective as of the Rider Effective Date.
EXTREME ART STUDIO FRANCHISING, LLC,
a Texas limited liability company
DATED: FRANCHISE OWNER FRANCHISE OWNER (IF YOU ARE A CORPORATION, (IF YOU ARE AN INDIVIDUAL AND NOT A LEGAL ENTITY): LIMITED LIABILITY COMPANY, OR PARTNERSHIP): (Entity Name) (Signature) (Print Name) DATED: DATED:
EXHIBIT H-9
MODULE AMENDMENT TO FRANCHISE AGREEMENT
| This Module Amendment to the Franchise Agreement (the "Module Amendment") is made and entered into this between Extreme Art Studio Franchising, LLC, a Minnesota limited liability company ("Franchisor"), and [franchisee name], a [state and entity type] (referred to herein as "Franchisee"). |
|---|
| RECITALS |
| WHEREAS, on [date], Franchisor and Franchisee entered into a franchise agreement (the "Franchise Agreement") pursuant to which Franchisee is granted the right, and undertook the obligation, to open and operate a Extreme Art Studio franchised business using either: (i) an in-studio format operated from a location; (ii) a mobile unit location; or (iii) a remote format that does not have a physical location as indicated in the Franchise Agreement (the "Extreme Art Business"); |
| WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below. |
| WHEREAS, Franchisee and Franchisor are entering into this Module Amendment in order to add the Module(s) indicated below to the Franchise Agreement. Capitalized terms not defined herein shall have the meaning set forth in the Franchise Agreement. |
| NOW THEREFORE, in consideration of the mutual agreements, covenants and promises contained in this Module Amendment and for mutual consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows: |
| 1. RECITALS . The Recitals set forth above are hereby incorporated into the terms of this Module Amendment as if fully restated herein. |
| 2. MODULE SELECTION AND INITIAL MODULE FEE . Franchisee wishes to add the services and offer the Module(s) through the Extreme Art Business in accordance with the terms of this Module Amendment. The Module(s) that Franchisee desires to add to the Extreme Art Business are as follows (check all that apply): |
| Craft Academy ($15,000 initial module fee) |
| Kidscientific ($20,000 initial module fee) |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Module Amendment includes recitals and acknowledgements from the franchisee. Specifically, the document states that the franchisee desires to add one or more additional service modules to their Extreme Art Business. Furthermore, both the franchisee and franchisor are entering into the Module Amendment to add the selected module(s) to the existing Franchise Agreement.
By signing the Module Amendment, the franchisee acknowledges that adding the new module(s) will likely increase their initial and ongoing expenses. These expenses include, but are not limited to, inventory, equipment, supplies, materials, products, staff training, and signage. Some of these items must be purchased from Extreme Art Studio's approved vendors. The franchisee also acknowledges that these increased expenses will materially increase the cost of operating the Extreme Art Business.
Additionally, the franchisee confirms they have had the opportunity to investigate these expenses before entering into the Module Amendment and accepts sole responsibility for them. Extreme Art Studio makes no representations, warranties, or guarantees regarding the viability of the module(s), including potential revenues, income, profits, volume, or success. Each party confirms they have carefully read the Module Amendment, and it expresses the final and entire agreement between them concerning the module(s).