What is the relationship between the Extreme Art Rider and the Extreme Art Studio Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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, the Extreme Art Rider is an agreement that supplements the initial Franchise Agreement when a franchisee intends to open additional Extreme Art Studio locations under a Standard Franchise (Multi-2 or Multi-3). The initial Franchise Agreement outlines the general terms and conditions for operating an Extreme Art Studio franchise. However, specific details for each additional location, such as the approved location and territory, are documented in a separate Extreme Art Rider.
The Extreme Art Rider does not grant any territorial rights except those granted under the franchise agreement pursuant to the Extreme Art Riders for the Additional Franchises. The Extreme Art Rider is essential for franchisees who purchase a Standard Franchise, allowing them to expand their business beyond a single location. The franchisee must sign the current form of the Extreme Art Rider then being used by Franchisor for an Extreme Art franchise for each Additional Franchise. Franchisee acknowledges that the then-current form of Extreme Art Rider may differ from the Extreme Art Rider found in the Franchise Agreement. Franchisee will not be required to pay a separate initial franchise fee.
The Extreme Art Rider includes specifics such as the approved location, which is documented in Attachment E-1 after the site has been approved by Extreme Art Studio Franchising, LLC. The territory, agreed upon by both parties in accordance with Item 12 of the Franchise Disclosure Document, is also specified in Attachment E-1. The Extreme Art Rider ensures that each additional location adheres to the standards and requirements set by Extreme Art Studio. The services provided by Extreme Art Studio Franchising for the Rider Business are the same as those outlined in Section 4 of the Franchise Agreement, unless otherwise specified.
The Extreme Art Rider's term is linked to the Franchise Agreement, terminating upon the termination or expiration of the Franchise Agreement, or upon the transfer of the Rider Business in compliance with the Franchise Agreement. The renewal provisions of Section 13 of the Franchise Agreement also apply to the Extreme Art Rider. This connection ensures that the additional franchise locations operate under the same overarching terms and conditions as the initial franchise, maintaining consistency and compliance across all Extreme Art Studio businesses owned by the franchisee.