What standards must be observed at each Extreme Art Studio location?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
etition from us, from other franchisees and from other channels of distribution or competitive brands that we control within the Territory.
1.7 MODIFICATION OF SYSTEM. Because complete and detailed uniformity under many varying conditions might not be possible or practical, you acknowledge that we specifically reserve the right and privilege, as we consider being best, in our sole opinion, to vary System Standards (as defined in Section 4.2) for any franchise owner based upon the peculiarities of any condition that we consider important to that franchise owner's successful operation. We may choose not to authorize similar variations or accommodations to you or other franchise owners.
2. DEVELOPMENT AND OPENING OF THE FRANCHISED BUSINESS.
- 2.1 EXTREME ART STUDIO BUSINESS. You agree not to operate the Franchised Business at any location outside of your Territory, except as provided in Section 1.6. In addition, if you operate an Extreme Art Studio Business, the following provisions in this Section Error! Reference source n ot found. shall apply to your Extreme Art Studio Business:
- 2.1.1 You are responsible for selecting each Studio location for the Extreme Art Studio Business. We will provide you with assistance, including site selection, site evaluation, lease review, and construction project management for any Extreme Art Studio Business, as outlined in the Franchise Operations Manual. You may not lease or purchase a site for your Extreme Art Studio Business until after we have approved the site in writing. We will provide you with mandatory and suggested criteria for Studio locations for the Extreme Art Studio Business. We may inspect a Studio that you propose before we grant our approval. You acknowledge and agree that our approval of any Studio is merely our determination, entirely for our own purposes, that the Studio site meets our current criteria. Our consent does not constitute a representation or warranty of any kind, express or implied, of the Studio's suitability, and you confirm that you have not relied, and will not rely, on our approval for that purpose. You recognize that demographic and/or other factors could change at any time before or during the term of this Franchise Agreement, altering the Studio's potential and suitability. Your selection of the Studio is based on your own independent investigation of, or agreement in the future to investigate, the Studio's suitability. With respect to each Studio, we will not assess compliance with federal, state or local laws and regulations, including the ADA and safety requirements, as compliance with these laws is your responsibility. We will approve additional Studios that you propose for the Extreme Art Studio Business if the proposed Studio meets our then-current criteria; provided that we reserve the right to deny approval of an additional Studio if we determine that you are not maximizing the use of your existing Studio.
- 2.1.2 You must not enter into a lease for a Studio until we approve such location. The lease must include the terms and conditions that we require from time to time, including those found in our current form of lease addendum. You may not enter into any lease until we consent in writing to the lease agreement. Neither our approval nor any guidance and assistance that we provide or have provided in connection with your negotiation of the lease constitute a guarantee or warranty, express or implied, that the terms of the lease represent the most favorable terms available in your Territory. You must enter into a lease for the Extreme Art Studio Business within six months after the Effective Date. You acknowledge that any lease you sign for the Extreme Art
Studio Business may require you, your owners and their respective spouses to sign a personal guarantee.
2.2 OPERATING ASSETS.
You agree to use in operating the Franchised Business only those products, signs, inventory, supplies and equipment ("Operating Assets") that we approve for Extreme Art Studio Businesses as meeting our standards and specifications for customer service, quality, design, appearance, function and performance. We will advise you on necessary pre-opening procedures and assist you with inventory ordering of products, equipment and supplies through our affiliate or other suppliers. If you operate an Extreme Art Studio Business, you must submit construction plans and specifications to us for our approval before you begin construction at the Studio. You may, but are not required to use our approved construction management supplier to manage the entire build out and construction of your Studio. If you elect to use the approved construction management supplier, you will pay any construction management fee directly to our supplier. You will, at your own cost and expense, purchase and install all furnishings, fixtures, equipment, supplies and signage in conformance with the Franchise Operations Manual and our standards and specifications. You agree to place or display at the Franchised Business the Operating Assets as required by us from time to time. You agree to purchase or lease approved brands, types or models of Operating Assets in accordance with Section 8.3 of this Franchise Agreement.
2.3 COMPUTER SYSTEM.
- 2.3.1 You must obtain and use the computer hardware and software that we designate ("Computer System") for each of your Extreme Art Studio Businesses. Without limiting the foregoing, you must use the computer software we designate to manage the daily workflow of the Extreme Art Studio Business; coordinate the customer ordering experience; track inventory, labor, and payroll; and collect information about students and their parents, prices, sales, and other information. We may modify specifications for and components of the Computer System from time to time, and you agree to implement our modifications within 30 days after you receive notice from us, which may include purchasing, leasing, and/or licensing new or modified computer hardware and/or software, and obtaining service and support for the Computer System. You acknowledge and agree that changes to technology are dynamic and not predictable within the term of this Franchise Agreement. In order to provide for the inevitable but unpredictable changes to technological needs and opportunities, you agree that we will have the right to establish, in writing, reasonable new standards for the implementation of technology.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees must adhere to specific standards to maintain uniformity and brand integrity. Extreme Art Studio retains the right to modify these standards for individual franchise owners based on unique conditions that the franchisor deems important for successful operation. However, such modifications for one franchisee do not guarantee similar accommodations for others. Franchisees are responsible for selecting a location that meets Extreme Art Studio's criteria, but must receive written approval from Extreme Art Studio before leasing or purchasing the site.
The site must satisfy demographic and location requirements, as well as meet the franchisor's standards for build-out, interior design, layout, floor plan, signs, designs, color, and décor. Once a site is approved, Extreme Art Studio will complete Attachment E-1 to specify the approved location. While Extreme Art Studio provides assistance with site selection, evaluation, lease review, and construction project management, the franchisee is ultimately responsible for selecting the location and negotiating lease terms. The franchisor's approval of a site does not constitute a warranty of its suitability, and franchisees are expected to conduct their own independent investigations.
Extreme Art Studio franchisees are also responsible for complying with all federal, state, and local laws and regulations, including ADA and safety requirements. Additionally, franchisees must maintain specific insurance coverage, including liability insurance for bodily and personal injury, death, and property damage. These policies must meet minimum coverage amounts prescribed by Extreme Art Studio and be purchased from licensed insurers with a rating of "A/VIII" or higher by A.M. Best Company. Extreme Art Studio and its affiliates must be named as additional insureds on these policies, and the franchisor must receive 30 days' prior written notice of any material modification, cancellation, or expiration.
Furthermore, franchisees are required to spend $500 each calendar month on local advertising and promotion, and must provide an accounting of these expenditures upon request. Franchisees must also adhere to Extreme Art Studio's advertising guidelines, ensuring that all promotional materials are clear, factual, and not misleading. All advertising materials must be submitted for approval at least ten days before use, and any materials not approved within five days are deemed disapproved. Franchisees must also participate in advertising programs established by Extreme Art Studio, including offering rebates, giveaways, and other promotions, and must only sell gift cards/certificates issued or sponsored by the franchisor.