What is the purpose of the Extreme Art Studio Multi-Franchise Addendum?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
If we grant you a Standard Franchise, you must sign our Multi-Franchise Addendum the form of which is attached to the Franchise Disclosure Document in Exhibit H.
Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, you and we will execute the then-current form of Extreme Art Rider ("Extreme Art Rider"), the current form of which is attached to this Franchise Agreement in Attachment E but which may vary materially and substantially from the form attached to this Franchise Agreement.
If you operate multiple Extreme Art Studio Businesses, each reference to the "Franchised Business" herein shall refer to 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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, if Extreme Art Studio grants a franchisee a Standard Franchise, which is either up to two Extreme Art Studio Businesses ("Multi-2") or up to three Extreme Art Studio Businesses ("Multi-3"), the franchisee must sign their Multi-Franchise Addendum.
The Multi-Franchise Addendum allows a franchisee to exercise rights under the addendum only by entering into a separate Extreme Art Rider with Extreme Art Studio for each additional franchise. The franchisee must sign the current form of the Extreme Art Rider for each additional franchise, which may differ from the Extreme Art Rider found in the Franchise Agreement. The franchisee is not required to pay a separate initial franchise fee for each additional franchise.
The addendum does not grant the franchisee the right to franchise, license, sub-franchise, or sublicense others to operate franchised businesses. Only the franchisee may develop, open, and operate additional franchises pursuant to the addendum and Extreme Art Riders. The franchisee is not granted any territorial rights or other rights except those granted under the franchise agreement pursuant to the Extreme Art Riders for the additional franchises. Except for the initial franchise fee, the franchisee is liable for all costs and expenses incurred in opening the additional franchises. The addendum and the franchisee's right to open additional franchises terminate upon the termination or expiration of the Franchise Agreement.