Under what circumstances might Extreme Art Studio allow a Designated Manager?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You (or your Operating Owner) are responsible for the day-to-day management, direction, and control of your Extreme Art Studio Business, subject to the terms and conditions of the Franchise Agreement. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to supervise the day-to-day operations of the Extreme Art Studio Business. The Designated Manager must
successfully complete our Initial Training Program. The Designated Manager need not have an ownership interest in the franchisee entity. If, at any time during the term of the Franchise Agreement, you replace your Operating Owner and/or Designated Manager, that replacement must attend and successfully complete the first available Initial Training Program. You will be charged a training fee for each and every replacement Operating Owner and/or Designated Manager and will be responsible for all costs for airfare, ground transportation, lodging, meals and expenses. You (or your Operating Owner) or your Designated Manager (if any) must continuously exert your (or his or her) best efforts to promote and enhance your Extreme Art Studio Business. Your Extreme Art Studio Business must always be under your (or your Operating Owner's) or your Designated Manager's (if any) direct, full-time supervision.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, while the franchisee (or an Operating Owner with at least 51% ownership) is generally responsible for the day-to-day management of the Extreme Art Studio business, Extreme Art Studio may, under certain circumstances, allow the franchisee to appoint a Designated Manager to supervise daily operations.
This Designated Manager must successfully complete Extreme Art Studio's Initial Training Program. Unlike the Operating Owner, the Designated Manager is not required to have an ownership interest in the franchisee entity. If the franchisee replaces either the Operating Owner or the Designated Manager, the replacement must attend and successfully complete the Initial Training Program.
Extreme Art Studio charges a training fee for each replacement Operating Owner or Designated Manager. The franchisee is also responsible for covering the costs of airfare, ground transportation, lodging, meals, and other expenses related to the training. Whether it's the Operating Owner or a Designated Manager, they must continuously work to promote and enhance the Extreme Art Studio business, ensuring the business is always under their direct, full-time supervision.