Which section of the Extreme Art Studio FDD covers the site selection process?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
We do not provide the above services to renewal franchisees and may not provide all of the above services to franchisees that purchase existing Extreme Art Studio Businesses or for your additional Extreme Art Studio Businesses purchased under a Standard 2 Franchise or Standard 3 Franchise.
Site Selection
We will provide you with our site selection criteria for you to use to select and acquire a site for your Studio which meets our site selection criteria. You may not lease or purchase a site for your Studio until after we have approved the site in writing. The factors we consider in approving sites for your Studio include location; size; suitability; layout; access and visibility of the proposed location; proximity to other businesses; location and nature of any competitors; population density and demographics; vehicle traffic; pedestrian traffic; existing tenant mix; parking convenience; and other factors that may be relevant to your market. The same site selection criteria will generally be applicable to all Extreme Art Studio Business franchisees. We generally do not own the premises and lease it to you.
There are no deadlines for our approval or disapproval of your proposed Studio site, although we will typically be able to respond within two weeks after you submit to us all of the required information. Once we have approved your location, the Franchise Agreement or applicable Extreme Art Rider will automatically be amended to show the specific location as the only location where you are authorized to
operate the Extreme Art Studio Business. If you and we are not able to reach agreement on an approved site for your Studio within four months after you sign the Franchise Agreement or applicable Extreme Art Rider, then we have the option to terminate the Franchise Agreement without providing you a refund.
You must obtain our prior written approval of your Studio lease. Your Studio lease must meet our lease approval criteria, including certain mandatory lease provisions that we require for our protection. If you fail to enter into a lease for your Extreme Art Studio Business within six months after signing the Franchise Agreement, then we have the option to terminate the Franchise Agreement without providing you a refund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Item 11 covers the site selection process. Specifically, it mentions that Extreme Art Studio will provide franchisees with site selection criteria to use when choosing a location. However, the franchisee must receive written approval from Extreme Art Studio before leasing or purchasing a site.
The FDD outlines several factors that Extreme Art Studio considers when approving sites, including location, size, suitability, layout, access, visibility, proximity to other businesses, competitors, population density, demographics, traffic, tenant mix and parking. The same criteria are generally applied to all Extreme Art Studio franchisees. Extreme Art Studio typically does not own the premises and lease it to the franchisee.
The FDD states that there are no specific deadlines for approval or disapproval of a proposed site, but Extreme Art Studio typically responds within two weeks of receiving all required information. If an agreement on a site cannot be reached within four months of signing the Franchise Agreement, Extreme Art Studio has the option to terminate the agreement without a refund. Additionally, the franchisee must obtain written approval of the studio lease, and failure to enter into a lease within six months of signing the Franchise Agreement gives Extreme Art Studio the option to terminate the agreement without a refund.