Who is responsible for negotiating the lease or purchase terms for each of the franchisee's Extreme Art Studio Businesses?

According to Extreme Art Studio's 2024 Franchise Disclosure Document, the franchisee is solely responsible for selecting the location and negotiating the lease or purchase terms for each Extreme Art Studio Business. Although Extreme Art Studio may offer assistance, the ultimate responsibility lies with the franchisee.

Extreme Art Studio must authorize the specific location for the studio, referred to as the "Approved Location." This location will be designated in Attachment B of the Franchise Agreement for the initial studio and in the Extreme Art Rider for any additional studios. If the location is not yet finalized when the agreement is signed, Attachment B or the Rider will describe the location in general terms, with the specific address to be added later via Attachment B-1 or Attachment E-1.

Prospective franchisees should understand that Extreme Art Studio's approval of a location does not constitute a warranty of its suitability or potential. The franchisee is expected to conduct their own independent investigation to determine if the location meets their needs and expectations. The franchisee also bears the risk that demographic or other factors could change, affecting the studio's potential. Franchisees are not guaranteed any specific location and may not be able to obtain their top choice.

The agreement stipulates that the franchisee and Extreme Art Studio must agree on an Approved Location within four months of signing the Franchise Agreement. Failure to do so gives Extreme Art Studio the option to terminate the agreement. This highlights the importance of proactive site selection and lease negotiation by the franchisee.