What is the term length of the Extreme Art Studio Franchise Agreement?

• 1.4.3 The term of this Franchise Agreement begins on the Effective Date and expires ten years from that date, unless sooner terminated as provided herein.

• 13.1.1 Upon expiration of this Franchise Agreement, if you meet certain conditions, and subject to the terms and conditions of this Section 13, and subject to the terms and conditions of this Franchise Agreement, then you will have the option to acquire a successor franchise to operate the Franchised Business as an Extreme Art Studio Business for an additional term of ten years. If you are signing this franchise agreement as a successor agreement, the references to "term" shall mean the applicable renewal term of the successor agreement. The qualifications and conditions for the successor franchise term are described below.

• 13.1.2 When this Franchise Agreement expires you have the option to acquire a successor franchise commencing immediately upon the expiration of this Franchise Agreement, if:

  • (a) you (and each of your owners) have substantially complied with this Franchise Agreement during its term;
  • (b) you (and each of your owners) are, both on the date you give us written notice of your election to acquire a successor franchise (as provided in Section 13.2 below) and on the date on which the term of the successor franchise would commence, in full compliance with this Franchise Agreement and all System Standards;
    • (c) you add, update, or replace Operating Assets (if necessary) at our request;
  • (d) you pay us a successor franchise fee for each successor Extreme Art Studio Business being renewed, in the amount of ten percent (10%) of our then-current Initial Franchise Fee for new franchises (or if we are not offering Franchises at the time of your renewal, the successor franchise fee shall be ten percent (10%) of the initial franchise fee listed in our most recent franchise disclosure document); and
  • (e) you: (a) retain the right to use the Studio(s) and agree to renew your lease agreements; or (b) at your option, secure rights to use one or more substitute Studio(s) that we approve, and you enter into lease agreements with such Studios according to System Standards then-applicable for Extreme Art Studio Businesses;

(f) you agree to sign the franchise agreement we then use to grant franchises for Extreme Art Studio Businesses (modified as necessary to reflect the fact that it is for a successor franchise), which may contain provisions that differ materially from any and all of those contained in this Franchise Agreement. You also agree to complete any additional training programs to meet our then-current standards at your expense.

You agree to give us written notice ("Your Notice") of your election to acquire a successor franchise no more than 12 months and no less than six months before this Franchise Agreement expires.

Source: Item 22 — CONTRACTS (FDD page 49)