Does the Multi-Franchise Addendum grant the franchisee the right to sub-franchise the Extreme Art Studio business?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Multi-Franchise Addendum does not grant franchisees the right to sub-franchise. The addendum specifically states that franchisees cannot franchise, license, sub-franchise, or sublicense the operation of Franchised Businesses to others.

This means that only the franchisee or franchisee-affiliated entities approved by Extreme Art Studio Franchising, LLC can develop, open, and operate additional franchises under the Multi-Franchise Addendum and Extreme Art Riders. The franchisee's rights are limited to entering into Extreme Art Riders to open additional franchises, subject to the terms of the franchise agreement for those additional locations.

This restriction is fairly standard in franchising, as franchisors typically want to maintain control over the brand and ensure consistent operations. By prohibiting sub-franchising, Extreme Art Studio retains the ability to select and train all franchisees directly, helping to uphold quality standards across the system. A prospective franchisee should be aware that they will be responsible for personally overseeing the development and operation of any additional Extreme Art Studio locations they open under the Multi-Franchise Addendum.