What is the name of the company granting the franchise in the Extreme Art Studio Approval of Requested Assignment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
This Approval of Requested Assignment ("Agreement") is entered into this day of , 20, between Extreme Art Studio Franchising, LLC ("Franchisor"), a Minnesota limited liability company ("Former Franchisee"), the undersigned owners of Former Franchisee ("Owners") and , a [State] [Corporation/Limited Liability Company] ("New Franchisee"). RECITALS WHEREAS, Franchisor and Former Franchisee entered into that certain franchise agreement dated , 20 ("Former Franchise Agreement"), in which Franchisor granted Former Franchisee the right to operate an Extreme Art franchise located at ("Franchised Business"); and WHEREAS, Former Franchisee desires to assign ("Requested Assignment") the Franchised Business to New Franchisee, New Franchisee desires to accept the Requested Assignment of the Franchised Business from Former Franchisee, and Franchisor desires to approve the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon the terms and conditions contained in this Agreement, including that New Franchisee sign Franchisor's current form of franchise agreement together with all exhibits and attachments thereto ("New Franchise Agreement") contemporaneously herewith. NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements herein contained, the parties hereto hereby covenant, promise, and agree as follows: 1. Payment of Fees. In consideration for the Requested Assignment, Former Franchisee acknowledges and agrees to pay Franchisor the Transfer Fee, as required under the Franchise Agreement ("Franchisor's Assignment Fee"). 3. Consent to Requested Assignment of Franchised Business. Franchisor hereby consents to the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon receipt of the Franchisor's Assignment Fee from Former Franchisee and the mutual execution of this Agreement by all parties. Franchisor waives its right of first refusal set forth in the Former Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the company granting the franchise in the Sample Approval of Requested Assignment is Extreme Art Studio Franchising, LLC. The document specifies that Extreme Art Studio Franchising, LLC, a Minnesota limited liability company, is referred to as the "Franchisor" in the agreement.
This agreement outlines the terms and conditions under which Extreme Art Studio Franchising, LLC approves the transfer of a franchise from a former franchisee to a new franchisee. It includes details such as the payment of a transfer fee by the former franchisee to the franchisor and the franchisor's consent to the assignment upon receipt of this fee and the execution of the agreement by all parties involved.
For a prospective Extreme Art Studio franchisee, this indicates that Extreme Art Studio Franchising, LLC is the entity they will be dealing with when seeking approval for any transfer of their franchise. It also highlights the importance of understanding the terms and conditions of the franchise agreement related to assignments, including the payment of fees and the franchisor's rights and obligations in the transfer process.