How is the 'Territory' for an Extreme Art Studio Business defined?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
----------------------------------------------| | Name: | | | Title: | | | DATED: | | | FRANCHISE OWNER | FRANCHISE OWNER | | (IF YOU ARE A CORPORATION, LIMITED LIABILITY COMPANY, OR PARTNERSHIP): | (IF YOU ARE AN INDIVIDUAL AND NOT A LEGAL ENTITY): | | (Entity Name) | (Signature) | | Sign: | (Print Name) | | Name: | DATED: | | Title: | | | DATED: | |
ATTACHMENT B-1
TO THE FRANCHISE AGREEMENT
| Approved Location: |
|---|
| The Approved Location for your Extreme Art Studio Business, as provided in Section 1.4 of the |
| Agreement, is: |
| Territory: |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the territory for an initial Extreme Art Studio Business is mutually agreed upon by the franchisee and franchisor. The FDD states that the territory is defined as being a four-mile radius circle around the physical location of the approved Extreme Art Studio Business. This territory agreement is documented in Section 1.5 of the Franchise Agreement.
Extreme Art Studio will not establish or operate, or franchise any entity to establish or operate, an Extreme Art Studio Business using the Marks and System at any location within the Territory of any of your Extreme Art Studio Businesses, once such Territory has been determined, provided that the franchisee is in full compliance with the terms and conditions of the Franchise Agreement and all other agreements with Extreme Art Studio and its affiliates. The Franchise Agreement also states that the territory shall be the specific geographical area Extreme Art Studio specifies for the applicable Extreme Art Studio Business and may be described in terms of contiguous zip codes, street boundaries, and county boundaries or depicted on a map included on Attachment B-1 or the applicable Extreme Art Rider.
However, Extreme Art Studio retains several rights regarding the placement of other businesses and the sale of products and services. These rights include establishing other Extreme Art Studio Businesses or similar businesses outside the franchisee's territory, selling products or services through alternative channels of distribution (including the Internet) within or outside the territory, and offering franchise and license rights for modules described in the Franchise Agreement. These reserved rights could allow Extreme Art Studio to operate or franchise other businesses that may compete with the franchisee's Extreme Art Studio Business, even within the general vicinity.
Prospective franchisees should carefully consider these territorial rights and limitations, as they could impact the potential market and competitive landscape for their Extreme Art Studio Business. It is important to discuss these aspects with Extreme Art Studio to fully understand the scope and limitations of the granted territory before entering into a franchise agreement.