What provisions are included in the Extreme Art Studio Franchise Agreement regarding 'MODIFICATION OF SYSTEM'?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
etition from us, from other franchisees and from other channels of distribution or competitive brands that we control within the Territory.
1.7 MODIFICATION OF SYSTEM. Because complete and detailed uniformity under many varying conditions might not be possible or practical, you acknowledge that we specifically reserve the right and privilege, as we consider being best, in our sole opinion, to vary System Standards (as defined in Section 4.2) for any franchise owner based upon the peculiarities of any condition that we consider important to that franchise owner's successful operation. We may choose not to authorize similar variations or accommodations to you or other franchise owners.
2. DEVELOPMENT AND OPENING OF THE FRANCHISED BUSINESS.
- 2.1 EXTREME ART STUDIO BUSINESS. You agree not to operate the Franchised Business at any location outside of your Territory, except as provided in Section 1.6. In addition, if you operate an Extreme Art Studio Business, the following provisions in this Section Error! Reference source n ot found. shall apply to your Extreme Art Studio Business:
- 2.1.1 You are responsible for selecting each Studio location for the Extreme Art Studio Business. We will provide you with assistance, including site selection, site evaluation, lease review, and construction project management for any Extreme Art Studio Business, as outlined in the Franchise Operations Manual.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio retains the right to modify System Standards as it deems advisable, including variations to accommodate local or regional differences. These modifications may require franchisees to invest additional capital in the Franchised Business and/or incur higher operating costs. Franchisees are obligated to implement any changes in System Standards within the time period requested by Extreme Art Studio, which may involve buying new Operating Assets, adding new products and services, updating their Computer System and adding personnel, or otherwise modifying the nature of their operations. These changes are considered part of the Franchise Agreement as of the Effective Date.
Extreme Art Studio also reserves the right to vary System Standards for any franchise owner based upon the peculiarities of any condition that it considers important to that franchise owner's successful operation. However, Extreme Art Studio is not obligated to authorize similar variations or accommodations to other franchise owners.
Furthermore, franchisees must obtain and use the computer hardware and software that Extreme Art Studio designates for their Extreme Art Studio Businesses. Extreme Art Studio may modify specifications for and components of the Computer System from time to time, and franchisees agree to implement those modifications within 30 days after receiving notice. This may include purchasing, leasing, and/or licensing new or modified computer hardware and/or software, and obtaining service and support for the Computer System. Franchisees also agree to pay for any additional or replacement proprietary software or technology that Extreme Art Studio, its affiliates, or a third-party designee licenses to them, and for other maintenance and support services provided during the Franchise Agreement's term.