Is there a termination clause within the Extreme Art Rider for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Termination, Expiration and Renewal. This Extreme Art Rider and Franchisee's right to operate the Rider Business hereunder shall terminate as of the date of termination or expiration of the Franchise Agreement, or upon a transfer of the Rider Business in compliance with the provisions of the Franchise Agreement, regardless of when this Extreme Art Rider is executed, and shall be subject to the renewal provisions of Section Error! Reference source not found. of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the Extreme Art Rider contains termination clauses. Specifically, the Extreme Art Rider terminates automatically upon the termination or expiration of the main Franchise Agreement. Additionally, if a franchisee transfers their Rider Business in compliance with the Franchise Agreement, the Extreme Art Rider also terminates. The termination is effective regardless of when the Extreme Art Rider was initially executed.
This means that the Extreme Art Rider's fate is directly tied to the status of the main Franchise Agreement. If the Franchise Agreement is terminated for any reason, the franchisee's rights under the Extreme Art Rider also cease. Similarly, the Rider terminates if the franchisee sells the business.
This clause ensures that the rights and obligations under the Extreme Art Rider are not independent of the overall franchise relationship. A prospective franchisee should carefully review the termination provisions of the main Franchise Agreement to understand the circumstances under which their Extreme Art Studio business, including any additional Rider Businesses, could be terminated.