What standards and specifications must the Operating Assets meet to be approved for Extreme Art Studio Businesses?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees must use only the products, signs, inventory, supplies, and equipment that Extreme Art Studio approves. These "Operating Assets" must meet Extreme Art Studio's standards and specifications for customer service, quality, design, appearance, function, and performance. Extreme Art Studio will advise franchisees on pre-opening procedures and assist with inventory ordering through their affiliate or other suppliers.
Before starting construction at the studio, franchisees operating an Extreme Art Studio Business must submit construction plans and specifications for approval. While not required, franchisees can use Extreme Art Studio's approved construction management supplier to manage the build-out and construction, paying any construction management fees directly to the supplier. Franchisees are responsible for purchasing and installing all furnishings, fixtures, equipment, supplies, and signage in accordance with the Franchise Operations Manual and Extreme Art Studio's standards and specifications.
Extreme Art Studio also reserves the right to develop standards and specifications for the types, models, and brands of required Operating Assets, other products, materials, supplies, and services. Franchisees must purchase items meeting these specifications, and if required, only from approved distributors and suppliers, including Extreme Art Studio or its affiliates. Extreme Art Studio may concentrate purchases with specific manufacturers, distributors, or suppliers to obtain lower prices, advertising support, or services. They may also designate a single supplier for any product, service, Operating Asset, or other material, approving a supplier only for certain products.