Under what circumstances is Extreme Art Studio liable to the franchisee for the actions of the Interim Manager?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
1.3.6 The Operating Owner is authorized to deal with us on your behalf in respect of all matters whatsoever which may arise in respect of this Franchise Agreement, and any decision made by the Operating Owner will be final and binding upon you. We will be entitled to rely solely upon the decision of the Operating Owner in any such dealings without the necessity of any discussions with any other party named in this Franchise Agreement, and we will not be held liable for any actions taken by you or otherwise, based upon any decision or actions of the Operating Owner.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Extreme Art Studio outlines the responsibilities regarding the management of the franchised business. The franchisee (or their Operating Owner) is primarily responsible for the day-to-day management, direction, and control of the Extreme Art Studio business, adhering to the terms and conditions of the Franchise Agreement.
However, the document specifies that the Operating Owner is authorized to act on behalf of the franchisee in all matters related to the Franchise Agreement. Any decision made by the Operating Owner is considered final and binding upon the franchisee. Importantly, Extreme Art Studio explicitly states that it will not be held liable for any actions taken by the franchisee or otherwise, based upon any decision or actions of the Operating Owner.
This indicates that Extreme Art Studio is not liable for the actions of the Operating Owner, who is authorized to act on behalf of the franchisee. The franchisee bears the responsibility for the decisions and actions of their Operating Owner. The FDD does not mention any liability for an Interim Manager.