What is the purpose of the Multi-Franchise Addendum for Extreme Art Studio?
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 Extreme Art Studio's 2024 Franchise Disclosure Document, the Multi-Franchise Addendum is required if the franchisor grants a Standard Franchise, which allows the franchisee to operate up to two ("Multi-2") or three ("Multi-3") Extreme Art Studio Businesses. The addendum supplements the terms of the original franchise agreement, specifically addressing the opening of additional Extreme Art franchises.
The Multi-Franchise Addendum does not grant the franchisee the right to sub-franchise or license the business to others. Only the franchisee or approved affiliated entities can develop and operate additional franchises under the addendum. Each additional franchise requires a separate Extreme Art Rider, which is a supplementary agreement. The franchisee is not required to pay a separate initial franchise fee for each additional location.
The addendum and the franchisee's right to open additional locations terminate upon the termination or expiration of the original franchise agreement. Each Extreme Art Studio Business operated under the agreement is treated individually, meaning that all obligations apply separately to each location, unless otherwise specified in the agreement.