What is the 'System' that Extreme Art Studio franchise owners are authorized to use?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.1.3 We grant to persons who meet our qualifications and are willing to undertake the investment and effort, a franchise to own and operate an Extreme Art Studio Business offering the products and services we authorize using our business formats, business system, methods, procedures, signs, designs, layouts, standards, specifications, and the Marks we authorize ("System").
- 1.1.4 As a franchise owner of an Extreme Art Studio Business, you will comply with this Franchise Agreement, including any riders, addenda, or exhibits thereto, and all System Standards (as defined in Section 4.2) in order to maintain the high and consistent quality that is critical to attracting and keeping customers for Extreme Art Studio Businesses and preserving the goodwill of the Marks.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the 'System' that franchise owners are authorized to use encompasses the business formats, business system, methods, procedures, signs, designs, layouts, standards, specifications, and the Marks authorized by Extreme Art Studio. This system is designed for establishing, operating, and promoting a business that offers painting and immersive art activities for individuals aged 3 years through adults, focusing on classes, events, and themed parties, as well as the sale of retail items. The Extreme Art Studio business operates from an approved studio location.
As a franchisee, compliance with the Franchise Agreement and all System Standards is mandatory to maintain consistent quality, attract and retain customers, and preserve the goodwill associated with the Extreme Art Studio Marks. These System Standards may regulate various aspects of the business, including scheduling and managing classes, customer service, employee qualifications, staffing levels, class sizes, hours of operation, and inventory management. Franchisees must adhere to these standards, even if they believe a standard is not in their best interest.
Extreme Art Studio retains the right to modify System Standards periodically, which may require franchisees to invest additional capital or incur higher operating costs. Franchisees are obligated to implement these changes within the specified time frame, which may involve purchasing new assets, adding new products and services, updating the computer system, or modifying operations. The franchisor may also permit variations in the System Standards to accommodate local or regional differences.
The System also includes technology components, such as a Computer System, for which the franchisee is responsible for acquisition, operation, maintenance, and upgrades. Extreme Art Studio may require access to all information generated by the Computer System, including customer, price maintenance, and payroll data. Franchisees must also pay a Technology Fee for the use of any software or technology licensed or provided by Extreme Art Studio.