What is the relationship between the Extreme Art Studio Franchise Agreement and the Extreme Art Multi-Franchise Addendum?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
extension or renewal options in the name, place, and stead of Assignor for the sole purpose of effecting the extension or renewal.
(Signatures on following page)
IN WITNESS WHEREOF, Assignor and Assignee have signed this Collateral Assignment of Lease as of the Effective Date first above written.
ASSIGNOR: _ By: Printed Name: Its: ASSIGNEE: EXTREME ART STUDIO FRANCHISING, LLC By: Printed Name: Its: Rev. 022324
EXHIBIT H-7
MULTI-FRANCHISE ADDENDUM TO FRANCHISE AGREEMENT
| THIS ADDENDUM ("Addendum") is entered into and made effe | ective as of the date set forth on |
|---|---|
| the signature page hereof, by and between Extreme Art Studio Franchising | g, LLC (" Franchisor ") and the |
| franchisee named on the signature page of this Addendum ("Franchisee"). | This Addendum relates to that |
| certain Extreme Art franchise agreement dated, 20_ | ("Franchise Agreement") |
| and supplements the terms of the Franchise Agreement in relation to the ope | ening of additional Extreme Art |
| franchises. All capitalized terms not otherwise defined in this Addendum s | shall have the meaning set forth |
| in the Franchise Agreement. To the extent this Addendum conflicts wi | ith the terms of the Franchise |
| Agreement, the terms of this Addendum shall control. |
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- Initial Franchise Fee. Franchisee has paid the initial franchise fee listed in Section 2 of this Addendum. The initial franchise fee is fully earned immediately upon receipt and non-refundable, regardless of whether Franchisee opens any additional Extreme Art franchises.
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- Type of Franchise. Franchisee has purchased the franchise package listed in the chart below which allows Franchisee to open a certain number of additional Extreme Art franchises at a later date ("Additional Franchises") without paying any additional initial franchise fee (other than the initial franchise fee listed below).
| Type of Franchise: | |
|---|---|
| "Standard 2 Franchise" | Up to 2 Extreme Art franchises $80,000 |
| "Standard 3 Franchise" | Up to 3 Extreme Art franchises $110,000 |
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- Franchise Agreement and Extreme Art Riders. Franchisee shall exercise the rights under this Addendum only by entering into a separate Extreme Art Rider with Franchisor for each Additional Franchise. Franchisee shall sign the current form of 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.
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- Limited Rights. This Addendum does not grant Franchisee the right to franchise, license, sub-franchise, or sublicense others to operate Franchised Businesses. Only Franchisee (and/or Franchisee affiliated entities Franchisor approves) may develop, open, and operate Additional Franchises pursuant to this Addendum and Extreme Art Riders. This Addendum only grants Franchisee the right to enter into Extreme Art Riders to open Additional Franchises subject to the terms of the franchise agreement for such Additional Franchises. 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, Franchisee shall be liable for all costs and expenses incurred in opening the Additional Franchises.
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- Term. This Addendum and Franchisee's right to open Additional Franchises shall terminate as of the date of termination or expiration of the Franchise Agreement.
IN WITNESS WHEREOF, the parties hereto have duly signed and delivered this Agreement on the day and year first written above.
FRANCHISOR:
EXTREME ART STUDIO FRANCHISING, LLC
a(n) D 1100.
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 supplements the terms of the Franchise Agreement when a franchisee is granted a Standard Franchise to operate multiple Extreme Art Studio Businesses. Specifically, if Extreme Art Studio grants a franchisee the right to operate up to two ("Multi-2") or three ("Multi-3") businesses, the franchisee must sign the Multi-Franchise Addendum.
The Multi-Franchise Addendum does not grant the franchisee the right to franchise, license, sub-franchise, or sublicense to others. The franchisee can only exercise their rights under the addendum by entering into a separate Extreme Art Rider with Extreme Art Studio for each additional franchise. The franchisee must sign the current form of Extreme Art Rider for each additional franchise, which may differ from the rider found in the Franchise Agreement. However, the franchisee will not be required to pay a separate initial franchise fee for each additional location.
The Multi-Franchise Addendum and the franchisee's right to open additional franchises terminate upon the termination or expiration of the original Franchise Agreement. To open additional Extreme Art Studio Businesses under a Standard Franchise, the franchisee and Extreme Art Studio will execute the then-current form of Extreme Art Rider. Each reference to the "Franchised Business" refers to each individual Extreme Art Studio Business operated under the Franchise Agreement, and all obligations apply individually to each business.