Is the Rider Business considered a separate franchise from other Extreme Art Studio Businesses?
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, an Extreme Art Rider is required for each additional franchise location under a Standard Franchise agreement (Multi-2 or Multi-3). The FDD states that franchisees must enter into a separate Extreme Art Rider with the franchisor for each additional franchise they wish to open. This rider allows the franchisee to operate an additional Extreme Art Studio location, subject to the terms and conditions outlined in the franchise agreement.
While the Extreme Art Rider enables the operation of additional locations, it does not grant the franchisee the right to sub-franchise or license the business to others. Only the franchisee or their approved affiliated entities can develop and operate additional franchises under the Extreme Art Rider. Each Extreme Art Studio Business operated under a Standard Franchise is treated individually, meaning that all obligations within the Franchise Agreement apply to each location separately, unless otherwise specified.
The Extreme Art Rider specifies the approved location for each additional Extreme Art Studio Business. The franchisee is responsible for selecting the location and negotiating the lease terms, although Extreme Art Studio may provide assistance. The Extreme Art Rider, and the franchisee's right to operate the Rider Business, terminates upon the termination or expiration of the Franchise Agreement, or upon a transfer of the Rider Business in compliance with the provisions of the Franchise Agreement.