Can Extreme Art Studio require franchisees to purchase only items meeting their specifications?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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Studio Business may require you, your owners and their respective spouses to sign a personal guarantee.
2.2 OPERATING ASSETS.
You agree to use in operating the Franchised Business only those products, signs, inventory, supplies and equipment ("Operating Assets") that we approve for Extreme Art Studio Businesses as meeting our standards and specifications for customer service, quality, design, appearance, function and performance. We will advise you on necessary pre-opening procedures and assist you with inventory ordering of products, equipment and supplies through our affiliate or other suppliers. If you operate an Extreme Art Studio Business, you must submit construction plans and specifications to us for our approval before you begin construction at the Studio. You may, but are not required to use our approved construction management supplier to manage the entire build out and construction of your Studio. If you elect to use the approved construction management supplier, you will pay any construction management fee directly to our supplier.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio can require franchisees to purchase only items meeting their standards and specifications.
The FDD specifies that franchisees must use only products, signs, inventory, supplies, and equipment that Extreme Art Studio approves as meeting their standards for customer service, quality, design, appearance, function, and performance. These items are referred to as "Operating Assets." Extreme Art Studio reserves the right to approve specifications for manufacturers, suppliers, and distributors of these items.
Extreme Art Studio franchisees must purchase items meeting the franchisor's specifications. If required by Extreme Art Studio, franchisees must purchase these items only from approved distributors and suppliers, including Extreme Art Studio or its affiliates. This allows Extreme Art Studio to maintain quality control and uniformity across all franchise locations. Extreme Art Studio may also concentrate purchases with one or more manufacturers, distributors, or suppliers to obtain lower prices, better advertising support, or services.