What provision will be added to the Extreme Art Studio Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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- The following provision will be added to the Franchise Agreement:
No Limitation on Litigation. Despite the foregoing provisions of this Agreement, any provision in the Agreement which limits in any manner whatsoever litigation brought for breach of the Agreement will be void to the extent that any such contractual provision violates the Indiana Deceptive Franchise Practices Law.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IOWA
Any provision in the Franchise Agreement or Compliance Questionnaire which would require you to prospectively assent to a release, assignment, novation, waiver or estoppel which purports to relieve any person from liability imposed by the Iowa Business Opportunity Promotions Law (Iowa Code Ch. 551A) is void to the extent that such provision violates such law.
The following language will be added to the Franchise Agreement:
NOTICE OF CANCELLATION
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, for franchisees in Indiana, a specific provision will be added to the Franchise Agreement to protect their rights. This provision ensures that any clause in the agreement that unduly limits litigation for breaches of the agreement will be considered void if it violates the Indiana Deceptive Franchise Practices Law. This is designed to prevent Extreme Art Studio from enforcing terms that might unfairly restrict a franchisee's ability to pursue legal action.
Additionally, the Indiana addendum specifies that no statement, questionnaire, or acknowledgment signed by the franchisee at the start of the franchise relationship can waive claims under state franchise law, including claims related to fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Extreme Art Studio or its representatives. This ensures that franchisees cannot inadvertently give up their legal rights through standard paperwork.
For franchisees in Iowa, the following language will be added to the Franchise Agreement: "NOTICE OF CANCELLATION". Furthermore, any provision in the Franchise Agreement or Compliance Questionnaire that requires the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel, which would relieve any person from liability imposed by the Iowa Business Opportunity Promotions Law, is void to the extent that it violates such law. This protects franchisees from unknowingly waiving their rights under Iowa law.
These state-specific provisions are crucial for prospective Extreme Art Studio franchisees to understand, as they modify the standard Franchise Agreement to comply with local laws and provide additional protections. Franchisees should carefully review the addenda applicable to their state and consult with legal counsel to fully understand their rights and obligations.