What is the significance of the date entered into the Extreme Art Studio Module Amendment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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IN WITNESS WHEREOF, the parties have executed and delivered this Extreme Art Rider, to be effective as of the Rider Effective Date.
EXTREME ART STUDIO FRANCHISING, LLC,
a Texas limited liability company
DATED: FRANCHISE OWNER FRANCHISE OWNER (IF YOU ARE A CORPORATION, (IF YOU ARE AN INDIVIDUAL AND NOT A LEGAL ENTITY): LIMITED LIABILITY COMPANY, OR PARTNERSHIP): (Entity Name) (Signature) (Print Name) DATED: DATED:
EXHIBIT H-9
MODULE AMENDMENT TO FRANCHISE AGREEMENT
| This Module Amendment to the Franchise Agreement (the "Module Amendment") is made and entered into this between Extreme Art Studio Franchising, LLC, a Minnesota limited liability company ("Franchisor"), and [franchisee name], a [state and entity type] (referred to herein as "Franchisee"). |
|---|
| RECITALS |
| WHEREAS, on [date], Franchisor and Franchisee entered into a franchise agreement (the "Franchise Agreement") pursuant to which Franchisee is granted the right, and undertook the obligation, to open and operate a Extreme Art Studio franchised business using either: (i) an in-studio format operated from a location; (ii) a mobile unit location; or (iii) a remote format that does not have a physical location as indicated in the Franchise Agreement (the "Extreme Art Business"); |
| WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below. |
| WHEREAS, Franchisee and Franchisor are entering into this Module Amendment in order to add the Module(s) indicated below to the Franchise Agreement. Capitalized terms not defined herein shall have the meaning set forth in the Franchise Agreement. |
| NOW THEREFORE, in consideration of the mutual agreements, covenants and promises contained in this Module Amendment and for mutual consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows: |
| 1. RECITALS . The Recitals set forth above are hereby incorporated into the terms of this Module Amendment as if fully restated herein. |
| 2. MODULE SELECTION AND INITIAL MODULE FEE . Franchisee wishes to add the services and offer the Module(s) through the Extreme Art Business in accordance with the terms of this Module Amendment. The Module(s) that Franchisee desires to add to the Extreme Art Business are as follows (check all that apply): |
| Craft Academy ($15,000 initial module fee) |
| Kidscientific ($20,000 initial module fee) |
| Little Hands Discovery ($10,000 initial module fee) |
| Total initial module fee: $ Franchisee shall pay the total initial module fee to Franchisor upon entering into this Module Amendment. Franchisee acknowledges and agrees that the initial module fee payment is not refundable under any circumstances. |
| 3. REPORTING REQUIREMENTS . |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the date entered on the Module Amendment signifies the day that both Extreme Art Studio Franchising, LLC and the franchisee agree to modify the original franchise agreement by adding one or more service modules to the existing Extreme Art Business. This date is legally binding, indicating when the amendment comes into effect. The franchisee acknowledges that by signing the Module Amendment, they are agreeing to incur increased initial and ongoing expenses to operate the Extreme Art Business with the added module(s). These expenses include, but are not limited to, inventory, equipment, supplies, materials, products, staff training, and signage. Some of these items must be purchased from Extreme Art Studio's approved vendors.
The date is crucial because it marks the point from which the franchisee's obligations and rights under the Module Amendment begin. These obligations include paying the total initial module fee to Extreme Art Studio upon entering into the amendment, which is non-refundable under any circumstances. The initial module fees vary depending on the module selected: Craft Academy ($15,000), Kidscientific ($20,000), or Little Hands Discovery ($10,000). The franchisee also agrees to pay standard royalties and brand fund contributions on revenues from the added module(s), as defined in the original Franchise Agreement.
Furthermore, the Module Amendment specifies that the franchisee has had the opportunity to investigate these expenses before signing and is solely responsible for them. Extreme Art Studio makes no representations, warranties, or guarantees regarding the viability of the module(s), including potential revenues, income, profits, volume, or success. The date, therefore, represents the franchisee's informed consent to these terms and conditions, acknowledging the increased costs and risks associated with adding the new module(s) to their Extreme Art Studio Business. The date also confirms that all terms, conditions, and provisions of the original Franchise Agreement remain in full force and effect, except as specifically modified by the Module Amendment.