What are System Standards for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2 GUIDANCE AND SYSTEM STANDARDS.
We may advise you from time to time regarding the Franchised Business's operation based on your reports or our inspections.
We will provide mandatory and suggested standards, specifications, operating procedures and rules ("System Standards") that we periodically prescribe for operating an Extreme Art Studio Business, and information on your other obligations under this Franchise Agreement, which may include, but are not limited to: (1) standards, specifications, and operating procedures and methods that Extreme Art Studio Businesses use, including, but not limited to, scheduling and managing classes; (2) customer service standards and policies; (3) qualifications for other employees, including criminal background checks (although you will have sole responsibility and authority concerning employee selection and promotion); (4) staffing levels, training, dress and appearance of your employees; (5) amounts and types of classes to be offered, including lesson class sizes; (6) days and hours of operation; (7) supplies, equipment and inventory management; (8) use and display of the Marks at the Franchised Business and on Operating Assets and other materials; (9) sales, marketing, advertising, and promotional strategies and programs, and materials/media used in these programs; (10) recommended liability waiver forms for customers; (11) use and acceptance of gift cards, loyalty programs, coupons, passes, certificates and discounts; (12) policies regarding credit and debit cards, credit card vendors (including, among other things, companies that provide services for electronic payment such as near field communication vendors like "Apple Pay" and "Google Wallet"), electronic payment, other payment systems, and check verification services, including compliance with the then-current Payment Card Industry Data Security Standards, as those standards may be revised and modified by the PCI Security Standards Council, LLC or any successor organization, or standards that we may reasonably specify; (13) required and recommended associations and memberships; (14) participation in market research and testing and product and service development programs, as well as participation in, and dues assessed for, advisory councils; and (15) administrative, accounting, reporting and record retention.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, System Standards are the mandatory and suggested standards, specifications, operating procedures, and rules that Extreme Art Studio periodically prescribes for operating an Extreme Art Studio Business. These standards, along with other obligations under the Franchise Agreement, may include various aspects of the business.
These System Standards cover a wide array of operational areas, such as scheduling and managing classes, customer service policies, employee qualifications including background checks, staffing levels, employee training, dress and appearance, the types and amounts of classes offered including class sizes, days and hours of operation, and supplies, equipment and inventory management. Franchisees must also adhere to standards regarding the use and display of trademarks, sales, marketing, advertising, promotional strategies, recommended liability waiver forms, and the use and acceptance of payment methods like gift cards, loyalty programs, credit/debit cards, and electronic payment systems.
Additionally, System Standards include required and recommended associations and memberships, participation in market research, testing, product and service development programs, advisory councils, and administrative, accounting, reporting, and record retention practices. Extreme Art Studio may advise franchisees on the operation of their franchised business based on reports or inspections. These standards are crucial for maintaining the goodwill of the Extreme Art Studio brand and ensuring consistent operation across all franchise locations.