What is the purpose of the Extreme Art Rider in relation to the Extreme Art Studio Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
each individual Extreme Art Studio Business that you operate under this Franchise Agreement, unless otherwise specified. All obligations under this Franchise Agreement shall apply individually to each Extreme Art Studio Business you operate.
- 1.4.2 We must authorize the specific location for your Studio (each an "Approved Location"). The Approved Location for your initial Extreme Art Studio Business will be designated in Attachment B, and the Approved Location for any additional Extreme Art Studio Businesses will be specified in the Extreme Art Rider applicable thereto. If the Approved Location for your initial Extreme Art Studio Business has not been selected and approved at the time this Franchise Agreement is signed, or the Approved Location for any of your subsequent Extreme Art Studio Businesses have not been selected and approved at the time the Extreme Art Rider applicable thereto is signed, Attachment B (with respect to the initial Extreme Art Studio Business) or the applicable Extreme Art Rider (with respect to any subsequent Extreme Art Studio Business) will describe the Approved Location in general terms. When we subsequently approve a location for your Extreme Art Studio Business, we will complete Attachment B-1 or our then-current form of Attachment E-1, as applicable, to specify the address of that location, and such location will automatically become the Approved Location for the applicable Extreme Art Studio Business as if originally set forth in Attachment B or the Extreme Art Rider. Although we may assist you, you are solely responsible for selecting each Approved Location and negotiating the lease or purchase terms for each of your Extreme Art Studio Businesses. You agree that you are not guaranteed any specific Approved Location for any of your Extreme Art Studio Businesses, and you may not be able to obtain your top choice for any of your Extreme Art Studio Businesses. You and we must reach agreement on an Approved Location for your Studio within four months after you sign this Franchise Agreement, or we have the option to terminate this Franchise Agreement.
- 1.4.3 The term of this Franchise Agreement begins on the Effective Date and expires ten years from that date, unless sooner terminated as provided herein.
- 1.5 TERRITORY. Provided that you are in full compliance with the terms and conditions of this Franchise Agreement and all other agreements with us and our affiliates, we will not establish or operate, or franchise any entity to establish or operate, an Extreme Art Studio Business using the Marks and System at any location within the Territory (as defined below) of any of your Extreme Art Studio Businesses, once such Territory has been determined. The "Territory" shall be the specific geographical area we specify for the applicable Extreme Art Studio Business and may be described in terms of contiguous zip codes, street boundaries, and county boundaries or depicted on a map included on Attachment B-1 or the applicable Extreme Art Rider. .
- 1.6 TERRITORIAL RIGHTS WE RESERVE.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Rider serves to amend the original franchise agreement when a franchisee opens additional Extreme Art Studio locations.
Specifically, the Extreme Art Rider is used to designate the Approved Location for any additional Extreme Art Studio Businesses beyond the initial one. Attachment B of the initial agreement covers the first location, while the Rider specifies the location for subsequent studios. If the location isn't approved when the Rider is signed, it will describe the location in general terms until final approval. Once a location is approved, Attachment B-1 or the then-current form of Attachment E-1 will be completed to specify the address, which then automatically becomes the Approved Location.
The Extreme Art Rider also addresses territory specifics, pre-opening and ongoing services, and termination/renewal conditions for the additional franchise. The franchisee must sign the current version of the Extreme Art Rider for each additional franchise, and acknowledges that the terms may differ from the initial agreement. Importantly, the franchisee is not required to pay a separate initial franchise fee for these additional locations.