Under what circumstances does the Multi-Franchise Addendum terminate for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement and Multi-Franchise Addendum | Summary |
|---|---|---|
| (a) Length of the franchise term | Section 1.4 of Franchise Agreement and Section 5 of Multi-Franchise Addendum (Exhibit H-7) | 10 years. The Multi-Franchise Addendum terminates upon termination or expiration of the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–46)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the Multi-Franchise Addendum terminates upon the termination or expiration of the Franchise Agreement. The initial franchise term for an Extreme Art Studio is 10 years, as detailed in Section 1.4 of the Franchise Agreement and Section 5 of the Multi-Franchise Addendum.
This means that if the Franchise Agreement is terminated, either by the franchisee under specific conditions or by Extreme Art Studio with cause, the Multi-Franchise Addendum will also terminate. Similarly, upon the natural expiration of the 10-year term, the Multi-Franchise Addendum will end unless the franchisee successfully renews the Franchise Agreement.
It is important for a prospective Extreme Art Studio franchisee to understand the conditions under which the Franchise Agreement can be terminated, as this will directly impact the status of the Multi-Franchise Addendum. Franchisees should carefully review Section 14.1 (termination by franchisee) and Section 14.2 (termination by franchisor with cause) of the Franchise Agreement to be fully aware of their rights and obligations.