What is the site selection process for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
se.
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.
Although we will consult with you on your site for your Studio, assist you in finding an acceptable location, and require that your site for your Studio be subject to our final authorization, you have the ultimate responsibility in choosing, obtaining, and developing the site for your Studio. You are responsible for conforming the premises to local ordinances and building codes, obtaining the required permits, and constructing, remodeling and decorating the premises. We will not provide assistance for any of these franchisee obligations.
Schedule for Opening
You must begin offering services from the Studio within 12 months of signing the Franchise Agreement. Factors that affect this length of time include securing any necessary financing; selecting the Studio site; negotiating the lease; obtaining necessary permits; completing leasehold improvements; delivery of equipment, inventory and supplies; completing our initial training program; and hiring and training employees, If you fail to open your Extreme Art Studio Business within 12 months of signing the Franchise Agreement or Extreme Art Rider, we may terminate your Franchise Agreement (without providing you a refund) or you will be required to pay us an "Opening Extension Fee" of $1,000 per month until you open or until the Franchise Agreement is terminated.
You may not open your Extreme Art Studio Business until: (1) we notify you in writing that all of your pre-opening obligations have been fulfilled;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the franchisor provides franchisees with site selection criteria to use when selecting a location for their studio. However, the franchisee cannot lease or purchase a site until Extreme Art Studio has given written approval.
Extreme Art Studio considers factors such as location, size, suitability, layout, access, visibility, proximity to other businesses and competitors, population density and demographics, traffic, tenant mix and parking. The franchisor states that the same site selection criteria will generally apply to all franchisees. While Extreme Art Studio will consult with franchisees on their site and assist in finding an acceptable location, the franchisee has the ultimate responsibility in choosing, obtaining, and developing the site. The franchisee is also responsible for conforming the premises to local ordinances and building codes, obtaining the required permits, and constructing, remodeling and decorating the premises.
Extreme Art Studio does not provide assistance for these franchisee obligations. There are no deadlines for Extreme Art Studio's approval or disapproval of a proposed site, but they typically respond within two weeks after receiving all required information. Once a location is approved, the Franchise Agreement will be amended to reflect the approved location. If an agreement on an approved 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.
The franchisee must obtain Extreme Art Studio's prior written approval of the studio lease, which must meet the franchisor's criteria, including mandatory lease provisions. If a lease is not entered into within six months of signing the Franchise Agreement, Extreme Art Studio can terminate the agreement without providing a refund. The franchisee must begin offering services within 12 months of signing the Franchise Agreement, or they may face termination or be required to pay an "Opening Extension Fee" of $1,000 per month until the studio opens or the agreement is terminated.