When does the Multi-Franchise Addendum for Extreme Art Studio terminate?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Multi-Franchise Addendum terminates when the Franchise Agreement terminates or expires. Specifically, the addendum and the franchisee's right to open additional franchises end on the date of the Franchise Agreement's termination or expiration.

This means that the Multi-Franchise Addendum is tied directly to the underlying Franchise Agreement. If the Franchise Agreement is terminated early due to a breach or other cause, or if it expires at the end of its term, the franchisee loses the right to open any further Extreme Art Studio franchises under the addendum.

This condition is fairly standard in multi-unit franchising. Franchisors want to ensure that multi-unit franchisees remain in good standing and continue to operate successfully. By linking the Multi-Franchise Addendum to the main Franchise Agreement, Extreme Art Studio retains control over the franchisee's expansion rights and can prevent a poorly performing franchisee from opening additional locations.