What is the purpose of the 'RECITALS' section in the Extreme Art Studio Module Amendment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Module Amendment to the Franchise Agreement (the "Module Amendment") is made and entered into this between Extreme Art Studio Franchising, LLC, a Minnesota limited liability company ("Franchisor"), and [franchisee name], a [state and entity type] (referred to herein as "Franchisee"). |
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| RECITALS |
| WHEREAS, on [date], Franchisor and Franchisee entered into a franchise agreement (the "Franchise Agreement") pursuant to which Franchisee is granted the right, and undertook the obligation, to open and operate a Extreme Art Studio franchised business using either: (i) an in-studio format operated from a location; (ii) a mobile unit location; or (iii) a remote format that does not have a physical location as indicated in the Franchise Agreement (the "Extreme Art Business"); |
| WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below. |
| WHEREAS, Franchisee and Franchisor are entering into this Module Amendment in order to add the Module(s) indicated below to the Franchise Agreement. Capitalized terms not defined herein shall have the meaning set forth in the Franchise Agreement. |
| NOW THEREFORE, in consideration of the mutual agreements, covenants and promises contained in this Module Amendment and for mutual consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows: |
| 1. RECITALS . The Recitals set forth above are hereby incorporated into the terms of this Module Amendment as if fully restated herein. |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the 'RECITALS' section in the Module Amendment serves to provide context and background for the agreement between Extreme Art Studio Franchising, LLC and the franchisee. It outlines the existing franchise agreement, the franchisee's desire to add additional service modules, and the mutual agreement to enter into the Module Amendment.
The recitals section essentially sets the stage for the legally binding agreements that follow. By incorporating the recitals into the terms of the Module Amendment, Extreme Art Studio ensures that the context and intentions behind the agreement are clearly documented and legally relevant. This can be important for interpreting the agreement and resolving any disputes that may arise.
For a prospective Extreme Art Studio franchisee, understanding the recitals is crucial as it clarifies the reasons for the Module Amendment and its connection to the original franchise agreement. It confirms that the franchisee is adding new service modules to their existing Extreme Art Business and acknowledges that both parties agree to this addition. This section also highlights that capitalized terms not specifically defined in the amendment will retain the meanings defined in the original Franchise Agreement.