Is there a specific deadline associated with the Extreme Art Rider for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
at all times; and (3) any and all consequences if the Computer System is not properly operated, maintained, and upgraded.
2.4 OPENING REQUIREMENTS.
2.4.1 If you will operate an Extreme Art Studio Business, you must begin operating your Extreme Art Studio Business at your Approved Location within twelve months of signing this Franchise Agreement (or 12 months after signing the Extreme Art Rider for subsequent Extreme Art Studio Business(es)). If you do not open and operate your Extreme Art Studio Business within the timeframes as set forth above, you shall pay us the Opening Extension Fee (defined below) until you open or until the Franchise Agreement (or, in our discretion, Extreme Art Rider) is terminated.
3. FEES.
3.1 INITIAL FRANCHISE FEE. When you sign this Franchise Agreement, you will pay us a nonrecurring, nonrefundable initial franchise fee in the amount as set forth in Attachment A ("Initial Franchise Fee"). If you purchase a Standard Franchise, you will not be required to pay a separate Initial Franchise Fee when you sign the Extreme Art Rider (all other fees will apply). The Initial Franchise Fee is uniform, earned by us when paid, and is not refundable.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, if a franchisee is opening a subsequent Extreme Art Studio Business, they must begin operating at the Approved Location within 12 months of signing the Extreme Art Rider. If the franchisee fails to open within this timeframe, they must pay an Opening Extension Fee of $1,000 per month until the business opens or the Extreme Art Rider is terminated.
This fee continues each month until the Extreme Art Studio location is open or until Extreme Art Studio terminates the Extreme Art Rider. Failure to pay this fee constitutes a non-curable default, which means Extreme Art Studio can immediately terminate the agreement.
This clause in the Extreme Art Rider incentivizes franchisees to open their subsequent locations promptly. It also provides Extreme Art Studio with additional revenue if there are delays, and the right to terminate the agreement if the franchisee does not meet the opening deadline or pay the extension fees.