Does the Extreme Art Studio Owners Agreement create rights for third parties?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We may, from time to time, without notice to Owners, assign or transfer any or all of Owners' rights, duties and obligations or any interest therein in this Owners Agreement and, notwithstanding any assignment(s) or transfer(s), the rights, duties and obligations shall be and remain for the purpose of this Owners Agreement.
Each and every immediate and successive assignee or transferee of any of the rights, duties or obligations of any interest therein shall, to the extent of such party's interest in the rights duties and/or obligations, be entitled to the benefits of this Owners Agreement to the same extent as if such assignee or transferee were us.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Owners Agreement does create rights for third parties. Specifically, Extreme Art Studio may assign or transfer any or all of the owner's rights, duties, and obligations without notice to the owners. Each immediate and successive assignee or transferee of any of the rights, duties, or obligations is entitled to the benefits of the Owners Agreement to the same extent as Extreme Art Studio.
This means that Extreme Art Studio has the flexibility to transfer its rights and obligations under the Owners Agreement to another party, and that party will then have the same rights and benefits as Extreme Art Studio originally did. This could include the right to enforce the agreement, receive payments, or make decisions related to the franchise.
For a prospective franchisee, this clause indicates that the relationship and obligations outlined in the Owners Agreement could be transferred to a different entity during the term of the agreement. It is important for franchisees to understand that the party they are initially contracting with may not be the same party they are dealing with in the future, and that the new party will have the same rights as the original franchisor.