Are System Standards considered part of the Extreme Art Studio Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.8.2 As examples, and without limitation, System Standards may regulate any one or more of the items described in Sections 4.2 and 8.1 above, as well as any other aspects of operating and maintaining the Franchised Business that we determine to be useful to preserve or enhance the efficient operation, image, or goodwill of the Marks and Extreme Art Studio Businesses. You agree that System Standards we prescribe in the Franchise Operations Manual or otherwise communicate to you in writing or another tangible form (for example, via a System extranet or website), are part of this Franchise Agreement as if fully set forth within its text. All references to this Franchise Agreement include all System Standards as periodically modified.
- 8.9 VARIATION AND MODIFICATION OF SYSTEM STANDARDS. We may permit variations in the System Standards as we deem advisable, including, without limitation, variations to accommodate local or regional differences. We periodically may modify System Standards, and these modifications may obligate you to invest additional capital in the Franchised Business and/or incur higher operating costs. You agree to implement any changes in System Standards within the time period we request, whether they involve buying new Operating Assets, adding new products and services, updating your Computer System and adding personnel, or otherwise modifying the nature of your operations, as if they were part of this Franchise Agreement as of the Effective Date.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, System Standards are considered part of the Franchise Agreement. The agreement requires franchisees to operate and maintain their franchised business according to Extreme Art Studio's System Standards, which are essential for preserving the goodwill associated with the brand. These standards can be modified and supplemented periodically by Extreme Art Studio.
The System Standards that Extreme Art Studio prescribes in the Franchise Operations Manual or communicates in writing or tangible form are integrated into the Franchise Agreement as if they were fully written within the agreement itself. This means that franchisees are legally bound to adhere to these standards, and all references to the Franchise Agreement include these System Standards as they are updated.
Extreme Art Studio retains the right to permit variations in System Standards to accommodate local or regional differences and may modify these standards periodically. These modifications may require franchisees to invest additional capital or incur higher operating costs. Franchisees must implement any changes to System Standards within the timeframe requested by Extreme Art Studio, treating these changes as if they were part of the original agreement.