What is the written notice requirement for the Extreme Art Studio franchisee to terminate the franchise agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree to give us written notice ("Your Notice") of your election to acquire a successor franchise no more than 12 months and no less than six months before this Franchise Agreement expires. We agree to give you written notice ("Our Notice") not more than three months after we receive your notice, of our decision:
- (a) to grant you a successor franchise;
- (b) to grant you a successor franchise on the condition that you correct existing deficiencies of the Franchised Business or in your operation of the Franchised Business;
- (c) not to grant you a successor franchise based on our determination that you and your owners have not substantially complied with this Franchise Agreement during its term or were not in full compliance with this Franchise Agreement and all System Standards on the date you gave us written notice of your election to acquire a successor franchise; or
- (d) not to grant you a successor franchise if we are no longer offering franchises for Extreme Art Studio Businesses.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio FDD, the franchise agreement does not explicitly state the written notice requirement for the franchisee to terminate the franchise agreement. However, the FDD does state that the franchisee must provide written notice of their election to acquire a successor franchise no more than 12 months and no less than six months before the franchise agreement expires.
Item 17.2.1 discusses waiver of obligations, stating that Extreme Art Studio or the franchisee may waive or reduce any obligation under the franchise agreement by written instrument, effective upon delivery of written notice to the other party. This notice could potentially relate to some form of termination, but the FDD does not specify.
Since the FDD does not provide the specific written notice requirement for the franchisee to terminate the agreement, it is important that a prospective franchisee ask the franchisor about the specific conditions and procedures required for early termination to fully understand their obligations and rights.