Franchise Manual: Pre-Opening

Cordovan Art School

Brand Standards Manual

COPYRIGHT © 2025

BY

Cordovan Arts Franchising, LLC

No part of this publication may be reproduced in any form without written permission.

Franchisees are responsible for maintaining confidentiality of all contents of this Brand Standards Manual.

Failure to do so is a violation of the Franchise Agreement.

Welcome

Dear Franchisee,

Welcome To Cordovan Art School!

We are thrilled to extend our warmest greetings and congratulations on joining our esteemed franchise program. Your decision to become a part of the Cordovan Art School Team is a testament to your entrepreneurial spirit and commitment to success.

At Cordovan Art School, we take pride in fostering a collaborative and supportive community where each franchisee plays a crucial role in our shared success story. Your dedication and enthusiasm align perfectly with the values that define our brand, and we are confident that you will bring unique skills, perspectives and contributions!

As you embark on this exciting journey with us, rest assured that you are not alone. Our experienced team is here to provide guidance, support, and resources to help you navigate the intricacies of our business model. From comprehensive training programs to ongoing assistance, we are committed to ensuring that you have all the tools you need to thrive in your new venture.

In the coming weeks, you will have the opportunity to connect with our team, participate in training sessions, and familiarize yourself with the resources available to you. We believe that open communication and a strong sense of community are essential to your success, and we encourage you to reach out whenever you have questions or need assistance.

Once again, welcome to the Cordovan Art School family. We look forward to building a prosperous and enduring partnership with you. Together, we will achieve new heights and create a legacy of success.

If you have any immediate questions or concerns, please don’t hesitate to contact our dedicated franchise support team.

Congratulations on this exciting new chapter, and we wish you the very best in your journey as a Cordovan Art School franchisee.

Sincerely,

The Franchise Management Team

New Franchisee Onboarding

Corporate Office

Address: 3810 Gattis School Road, Suite #108, Round Rock, TX 78664

Website: www.cordovanartschool.com

Contact Information

Matt Fowers

Phone: (702) 378-4517

Email: matt@cordovanartschool.com

John Howell

Phone: (512) 673-8646

Email: john@cordovanartschool.com

Statement of Confidentiality

Franchisees must read and sign this Statement of Confidentiality immediately upon receipt receiving a login to the Cordovan Training System website, which gives them access to the Brand Standards Manual. Franchisees, please print, sign and forward to the Corporate Office.

Introduction to the Manual

The captions of the sections of this manual are to assist the parties in reading this manual and are not a part of the terms or provisions of the manual. The singular shall include the plural and the plural shall include the singular when required by the context of this manual. The masculine, feminine and neutral genders shall each include the other. All references to sections shall be directed to those sections set forth in this manual. The headings used in this manual are inserted only as a matter of convenience and does not define or limit the scope of this manual or the intent of any provision thereof.

Ownership of the Manual

This manual contains confidential and proprietary information related to the operation of a Cordovan Art School franchise business. The materials available through the Cordovan Art School Training System website are intended solely for the use of authorized Cordovan Art School franchisees and their approved staff.

These materials include, but are not limited to, this manual, training documents, videos, lesson plans, operational procedures, forms, templates, and other resources. The contents may not be copied, distributed, shared, reproduced, or used for any purpose other than the operation of an authorized Cordovan Art School franchise without the express written consent of Cordovan Art School.

Unauthorized use or disclosure of any information contained within the Cordovan Art School Training System is strictly prohibited.

Gender Statement

In this manual every attempt has been made to use gender-neutral terminology. Occasionally, however, the use of gender-specific terminology was unavoidable. Regardless of the language used, the Franchisor unconditionally offers the opportunity to become a franchisee equally to persons of any gender.

General Disclaimer

As a franchisee, you are responsible not only for following the proper steps in managing the business, but also for the completion of all daily operating responsibilities associated with the business. For example, only you are responsible for hiring and training a team to fulfill all necessary job functionalities of the business. In this Brand Standards Manual, we identify several recommendations or suggested practices related to various operational aspects of the business – we recommend you implement these systems within the business model.

In addition, Cordovan Arts Franchising, LLC will provide required measures for franchise system compliance. This Brand Standards Manual will clearly distinguish the content that is of high importance and value to the franchise. In those instances, the required standards exist to protect our interest in the franchise system and trademarks, not for the purpose of establishing any control or duty to manage those matters that are reserved to you.

This manual summarizes the mandatory policies and required practices relative to the operation of the franchise. Additional guidelines and recommendations are provided to assist you in forming your own policies where it is appropriate for you to do so. Some of these recommendations may not be the most appropriate for your locale. Consequently, it is your responsibility to ensure that you operate the business per the laws, regulations, and customs in your region.

Not only are you solely responsible for your own business policies and practices, but you are also accountable for the statements and actions of every person you employ. Franchisees are required to utilize their own legal (“legal counsel”, “attorney”) and financial (“accountant”, “CPA”) counsel when necessary and for verifying compliance with all laws and regulations.

In the event of inconsistencies or conflicts between this Brand Standards Manual and the Cordovan Arts Franchising, LLC Franchise Agreement, the latter document shall take precedence.

Definitions

• Franchise Operations Manual refers to this document. Synonymous with Brand Standards Manual.
• Corporate Office refers to the Franchise Corporation.
• Franchisor is the individual(s) who owns the rights to the company trademark and operates the Corporate Office.
• Franchisee is an individual buying rights to use the trademarked name. In some cases, the term ‘franchisee’ may be adapted to encompass a partner or cooperative agreement.
• Trademarks are the symbols and names legally registered to represent the company.

Manual Revisions

In the event the Corporate Office develops a more practical or efficient procedure in any specific area, the manual will be updated accordingly.

A Field Consultant from the Corporate Office will review with you the Brand Standards Manual during regularly scheduled visits to verify understanding of our systems and processes.

Submitting Manual/Policy Suggestions

Based on your experience, you may believe that a section or some specific information herein is unnecessary or incorrect. However, our business success is based upon the exact procedures and policies stated in this manual, and the strength of our franchise system depends upon the consistent adherence to these policies throughout the network by all franchisees.

Nevertheless, the principals at the Corporate Office recognize that you may have valuable experience or information that could be useful to others in the system. A major benefit of a franchise operation is the cumulative experience throughout the entire franchise organization. You are encouraged to send your suggestions or ideas to the Corporate Office using a Suggested Policy or Procedure Change Form (sample follows).

Suggested Policy or Procedure Change Form

Nine Common Mistakes of Novice Entrepreneurs

Once a realistic plan of action has been established, the key to your success lies in the ability to execute that plan consistently and effectively. We have identified “Nine Common Mistakes of Novice Entrepreneurs” that commonly prevent successful achievement of goals. Each of these first-time business mistakes is survivable, however, they can be (and often are) fatal when they hit all at once.

#1. Not Accepting Full Responsibility

The most common mistake is for the entrepreneur to not take full responsibility for everything that happens in his or her business. It is easy to make money when the economy is strong, and/or you are the first to penetrate a new market. However, when the economy takes a downturn, or the competition catches up, “losers” blame and make excuses; “winners” assess the facts and stay focused on results. True entrepreneurs are not whiners, they are winners. Whiners offer reasons and excuses while winners offer results and solve problems.

“If the desire to succeed in business is not followed by success, the desire is not to succeed in business.”

It’s been our experience to see a business fail and have the owner blame the economy, the competition or their own employees; but then see another individual with a similar market and turn it into one of the most successful in the country. Make the following declaration to yourself:

• I accept full responsibility for everything that happens in, and to the business.
• I am the author, creator of the business and everything that happens in and to the business.
• Who I am makes the fundamental difference in all outcomes of the business.
• There is no other responsible party, there are no rationalizations, justification, or explanations; whatever happens is a result of what I did or did not do.
• It is a reality and certainty that I am responsible.
• I believe it, I know it, and will experience it.
• I take this stand willingly, not for blame’s sake, but because it gives me the power to make a difference in the results.

#2. Hiring and/or Confronting Employees

One of the most common mistakes made by first-time entrepreneurs is not screening and hiring the best possible employees; much of your success is uncertain when making this decision. If you get lazy, you may start thinking, “This person seems likable and I need them now, so I will not check references before hiring or do a thorough interview to discover facts about their work habits, integrity, and goals.”

The cost for using this “quick fix” approach is extremely high in lost revenue, retraining time, use of the Franchisee’s time, etc. Using this approach, unless you really get lucky, will cause you to run through many employees before accidentally finding a good match. Do not allow yourself to be held “hostage” by incompetence.

“There’s no such thing as an indispensable employee.”

A chain is only as strong as its weakest link; employees quickly learn what level of incompetence you will tolerate. To reduce incompetence, you must know how to “straighten people out” without destroying relationships. It is natural to want to be liked, but our fear of confrontation often makes us hesitant to correct an employee. This merely compounds the problem by exposing an apparent weakness.

A successful confrontation avoids two traps:

1. Argument – Letting emotion get involved removes any chance for communication.

2. Digression – Letting yourself be sidetracked off the subject allows you to get distracted from your objectives.

When a confrontation is needed, always do it in private, and the sooner the better; the only question is how best to do it.

• Know the facts – Before making accusations, be sure you know what happened and why. Confronting someone without accurate and complete information quickly destroys your credibility.

• Be direct – If something disagreeable needs to be said, get it out in the open; hesitating to do so will only suggest you are unsure of yourself.
• Be clear – Let the employee know how you feel, express your concerns and frustrations, and clearly define why this behavior creates a problem for you, the company, and the employee.
• Keep your objectivity – Rarely are situations completely clear-cut; extenuating circumstances need to be analyzed. Do not attack the person, just the problem; let the facts speak for you.
• Listen – For a confrontation to be resolved, both parties must expose their positions. Be certain you know the other side. Only then is refutation or compromise possible.
• Get a commitment – You may get some satisfaction from “telling someone off, or putting them in their place,” but if you do not get the change you want, your feelings will only be temporary.

Remember, if you hire the right people, give them the right training, and provide a reward system that encourages individual expression, you will receive a depth of commitment that permits both the organization and the individual to prosper, and greatly reduce your turnover rate.

#3. The Inability to Effectively Manage Cash Flow

One of the potentially fatal mistakes made by first-time entrepreneurs is the inability to manage their cash flow; having the self-discipline to set aside income for rainy day emergencies, taxes, and down turns in the economy.

At Cordovan Art School, summer camp revenues arrive many months before summer camp season begins. You must have the discipline to hold onto cash until the end of camp season and all summer camp bills are paid.

“CASH FLOW IS KING!!!!!!!”

Failure to manage cash and expenses on an accrual basis and take out money for one’s self on a disciplined and prescribed basis, is a recipe for failure. Here is a hint: set up a separate, basic savings account which will serve as your “tax account,” as well as a business checking account. When you generate revenue, deposit it in your checking account; then take out for your estimated quarterly taxes, and only then pay yourself.

#4. Procrastination

Once you have completed your training and returned to your home territory, you must hit the floor running, and keep on running until you hit your goal. As the leader of your business, you should assign your time to high pay-off activities rather than have it consumed by the demand of other forces. There are many reasons people procrastinate, re: fear of failure or being wrong; unclear about how to accomplish the task; inability to prioritize; fear of confrontation or criticism; fatigue, etc.

To overcome procrastination:

• Know your strengths and weaknesses – get help when you do not know what to do.
• Get emotionally involved in your business – know your customers.
• Plan your work and work your plan – there is no such thing as an insurmountable lead in business.
• Prioritize – constantly ask what needs to be done now.
• Write down your fears – confronting them can diminish their hold on you.
• Visualize yourself-completing your tasks – focus on what is needed, not what is wanted.

#5. “Egocentrics”

To be “egocentric” is to focus on one’s self; where this becomes fatal in business is when the owner focuses on what he or she wants, instead of what is needed, or best for the company. The owner’s inflated ego may not allow him or her to admit they do not know what to, and their pride often prevents them from getting the help they need. The single and most recurring cause of failure of a business is rooted in the ego of the business leader.

“The person who will not be taught; cannot be taught.”

Most often, ego problems are something we feel other people have; we do not believe we have it, and we do not recognize it when it is there. Ego and true self-confidence are at opposite ends of the scale. Use of money is often tied to the ego of the business owner, not to the benefit of the business and its ultimate profitability. More businesses fail because of improper control of ego than lack of money.

#6 Getting Overwhelmed

Francoise Gilot once said, “Either you find yourself equal to a task that you undertake, or you do not undertake it. To be overwhelmed is for babies or children.” First-time entrepreneurs often get overwhelmed with having to solve all the problems, all the time. They fail to see that problems are merely opportunities in disguise, opportunities to learn more about one’s self, their employees, and/or the marketplace.

A dilemma, by definition, is an unsolvable problem; successful entrepreneurs have learned that there are very few true dilemmas in business; there’s always a way to get from where you are, to where you need to be, regardless of your education, income or status in life.

It has been said that when you are prepared you have no need for fear. Being overwhelmed is the sense of helplessness we feel when we do not believe we are going to be able to solve the problem at hand. The most difficult part of problem solving is not in coming up with the solution, but in accurately defining the problem.

Most business (and personal) problems will fall into the following five categories:

1. You are going in the wrong direction.
2. You do not have enough information.
3. You are trying to solve the wrong problem.
4. You are asking the wrong question.
5. You are fighting the wrong fight.

#7 Majoring in the Minors

To “major in the minors” is to focus one’s energy at being efficient instead of being effective. One can be highly efficient, but not very effective; one can be highly effective, but not very efficient. The entrepreneur who spends his or her day running errands, organizing their office, or checking the mail may be well organized and highly efficient; but if, at the end of the day, they fail to bring home the money, they will not have been very effective in building their business. On the other hand, the individual spends his or her day targeting new accounts, making cold calls, setting up appointments, and closing new accounts, may not be well organized and efficient, but will be extremely effective in bringing new accounts and cash into the business. Do not put procedures over profit.

#8 Not Focusing on the Bottom Line

The dictionary defines the word “capitalism as, “The economic system in which all or most of the means of production and distribution are privately owned and operated for profit.” The key words here are “operated for profit.” The primary reason for operating a business is to make a profit. Most first-time entrepreneurs do not go onto business for profit motives.

Their focus is on being the boss, having power, stroking their egos, making a difference, etc. It is not that these are incorrect or inappropriate, but if the focus is not on the bottom line, the business will not survive. Everything you do should be tied to the bottom line. If your activity does not show measurable, tangible results over a reasonable period, cut your losses, learn from your mistakes, regroup your troops, and chart another course of action.

#9. Growing weary

It has been said that the world does not care how many storms you encountered, only if you brought the ship in. Sometimes new entrepreneurs that are struggling, “My territory is different!” If you are not producing, look at your training; if your profit margins are not working, look at how you are operating your business; if customers start dropping, look at your service.

More people quit than fail.

How does one avoid these mistakes? Create a plan of action, work your plan, test viability, make the necessary adjustments and do not look to the right or the left until you achieve the desired outcome. This requires clear, distinct objectives plus regular evaluation of your plans and strategies.

We have been where you are now, and we are here for you!!!

About Cordovan Art School

John Howell founded Cordovan Art School in 2009 after a lifelong passion for art. By focusing on enrichment, education, kindness, and the needs of each individual artist, Cordovan Art School has been able to build a more sustainable and successful business that the traditional art “paint and sip” model that is so prevalent in the franchise world. Since the beginning John has utilized his unique combination of experiences to shape something incredibly unique and impactful. In John’s words:

“I started painting at age 5 when my mother enrolled me in a watercolor class. Week after week, I would look forward to going to class to paint a new picture. Without exception, at the end of each class I was so proud of what I had accomplished. In those early years, there was something about the creative process that was very rewarding for me.

When I was a teenager, I knew that I wanted to pursue a career in the arts, so I began working toward that goal by taking art classes and drawing any chance I could. My junior year in college, I married my wife, Jamee. It was during our courtship that I started wondering how I was going to explain to her parents that I was going to be an “artist”. How would they react to this news? As I reflect back on those thoughts, I wonder what would cause me to think that there is anything wrong with wanting to be an artist. For years I believed that success was packaged in the form of becoming doctor, a lawyer, or an accountant. I somehow had been led to believe that my left brain was more valuable than my right brain. In high school and college, I got good grades and remained at the top of my class. I could have become a doctor, a lawyer, or an accountant. But, at the end of the day, it just wasn’t me.

I began my art career by opening an art school in Temecula, California. I was also doing free-lance illustration work at that time. Both were creative endeavors that I enjoyed. However, my art career took an unexpected detour when I began a side business in real estate. What started as a hobby in real estate quickly turned into a full-time business, so I moved my family to Texas. I tell you this part of the story because, in a way, my hobby in commercial real estate was just another “empty canvas”; I used my creative thinking skills that I learned as an artist to put big real estate deals together. It was during this time that I started realizing that my right brained thinking, served me in many ways, and I was glad that I had developed my creative side. One of the benefits of developing our right-brains is the ability to adapt, think, and solve problems.

In 2009, I opened the doors of a new endeavor, the Cordovan Art School. I could not stay away from the paints, brushes, canvases, and the association with other talented artists and students. The arts continue to inspire me. Even though I have been painting professionally for many years now, the thrill of creating something from a blank piece of paper never grows old.

The name Cordovan comes from my favorite color NuPastel that I used in my college figure drawing classes. (Similar to the shade of brown that Leonardo DaVinci used in his drawing of his self-portrait). I went through so many NuPastels and newsprint pads that I lost track. It was difficult for me to learn to draw, and it took a lot of time and practice. Today, when I look at my early drawings, I can see how far I’ve come. It took a lot of trying and failing, but every step along the way was an exciting learning experience.

At Cordovan Art School our teachers teach the principles of art and design. Our students and teachers have a lot of fun working side by side and learning together. Come, exercise your right brain, and be amazed at the creativity that lies within you!”

Our Vision

to become the arts hub for art students and teachers

Our Mission

to enrich lives through a lifelong learning of the arts

Our Slogan

“We create artists”

Our Motto

“We are a company that builds people up and makes people better, and by doing so, we make the world better.”

Our Company Culture

We accomplish our vision, mission, slogan and motto by building the next generation of artists and leaders. It all starts as we become “servant leaders” ourselves. We build artist-leaders by how we treat our students, our teachers, and anyone we interact with at Cordovan Art School.

Cordovan is a customer service company, and our kindness comes across in the way we communicate with our customers, our teachers and our staff. We show kindness by the way that we immediately greet people when they enter our lobby, the way we talk, the way we send an email, the way we go the extra mile to make someone happy, and the way we create a friendly culture. We have a saying at Cordovan: “Smile/ Smile”. Whenever anyone walks through the door, they should be immediately greeted with a smile. And, when they walk out the door, they should have a smile on their face because of the experience they had while at Cordovan. Here are a few more things Cordovan stands for: Cordovan is a place where everyone can fit in and feel safe and loved; Cordovan is a place that is fun and filled with creativity; Cordovan is a place to learn art skills and leadership skills; Cordovan is a place to bond and create lasting friendships; Cordovan is a place that unites people together through a love of art; Cordovan employees give back by looking for ways to get involved with community art events. Cordovan employees and staff are friendly and happy.

Products and Services

The Cordovan Art School model is simple and structured efficiently to provide profitability and ease of operating management, which allows for ease of replication and will make for a straightforward training program with new franchise partners. Franchisees will offer similar, if not identical, products and services to the prototype location.

Cordovan Art School utilizes a variety of classes, camps, parties, and events to establish a consistent revenue stream at each location. The franchise offers a unique mix of offerings for both kids and adults. The full list of offerings/events include:

• Weekly Art Classes
• Art Camps
  • Spring Break
  • Summer
  • Thanksgiving
  • Winter Break
  • Other Holidays
• Events & Workshops
  • Girl Scouts
  • Corporate
  • Customized
• Parties
  • Art Canvas Painting
  • Paint your own Pottery (PYOP)
  • Wheel Throwing (Select Locations)

Fundamental to the experience is the hands-on nature of the employees and instructors. Customers should be encouraged to explore their creativity and learn new skills from the people that are able to teach them.

Cordovan Art School prides itself on having a fun environment where people can be themselves and learn to paint. The community-centric approach required by each franchisee will be critical to the success of each studio.

Cordovan’s Franchise System

Throughout training, each franchisee will become knowledgeable about our unique service approach. You will learn techniques to develop positive client relationships, efficiently operate the business, and market your services.

Franchisee Training

No franchisee will be allowed to commence operations until the franchisee has successfully completed the initial training program. The franchisee will not be permitted to continue operations until successfully completing the technical aspects of the initial training program. If the franchisee fails to meet the initial requirements specified by the franchisor, the franchisor may, at its option, require the completion of additional training or may cancel the Franchise Agreement.

Phase I — Training provided at a location designated by the Franchisor

Cordovan Art School will provide each franchisee with approximately three to four days of initial training at the Franchisor’s headquarters in Texas, or at another location determined by the Franchisor. Training will begin approximately three to four weeks before the franchisee’s opens for business.

The franchise owner and, if applicable, the individual who will serve as the Studio Manager should attend the training to ensure a thorough understanding of the business model, operational procedures, and day-to-day management of the studio.

The training program will cover administrative, operational, technical, sales, and marketing topics, as well as instruction related to art classes and the PYOP (if offered by the franchisee). Training will also include hands-on, practical experience designed to prepare participants for successful studio operations.

Initial training is provided for the franchise owner and up to two additional team members.

Phase II — Training provided at the franchisee’s location

On-site training is typically conducted during the week the franchisee opens for business and is intended to support the successful launch and operation of the new Cordovan Art School franchise.

An experienced Cordovan Art School trainer will provide approximately three to four days of on-site training and support. This training generally begins immediately prior to opening and continues through the first few days of business operations. Whenever possible, the on-site training will coincide with the franchisee’s Grand Opening Event.

During this time, the trainer will work directly with the franchisee and staff to reinforce operational procedures, assist with studio setup and class execution, provide guidance on customer service and administrative processes, and support local marketing and community outreach efforts. The training is designed to provide hands-on experience in a real operating environment and help the franchisee gain confidence in managing the day-to-day operations of the business.

The primary objective of the on-site training program is to ensure a smooth opening, establish sound operating practices, and position the franchisee for long-term success.

Phase III – Ongoing Training

Franchisees may be required to attend up to two refresher training sessions each year. Each session may last up to two days and will provide updates on operational procedures, marketing initiatives, best practices, new programs, and other developments within the Cordovan Art School system.

Subject to available space, the Franchisor may permit franchisees to send additional personnel to attend refresher training sessions. This training will be provided at no cost. However, franchisees are responsible for all travel, lodging, meals, wages, and other related expenses incurred by themselves and any attending personnel.

In addition, newly opened franchisees will be invited to participate in regularly scheduled Zoom support meetings. These meetings are designed to provide additional guidance, coaching, and operational support as franchisees establish and grow their businesses. The meetings also create opportunities for new franchisees to collaborate, share experiences, and learn from one another while receiving direct support from the Franchisor.

Letter of Completion: Franchisee Training

Roles and Responsibilities

Franchisor

• The Franchisor will provide ongoing support, guidance, and consultation related to the operation of the franchise business. From time to time, the Franchisor or a Field Consultant may conduct phone, virtual, or in-person visits to offer feedback and assistance.
• The Franchisor will provide access to the resources, systems, and approved suppliers necessary to operate the business and will assist with ordering materials and supplies as outlined in the Franchise Agreement.
• The Franchisor will develop and provide a variety of approved marketing and promotional materials for Franchisee use in accordance with the Franchise Agreement. Any additional marketing materials must be approved by the Franchisor prior to use.
• The Franchisor is committed to supporting franchisee success and encourages franchisees to contact the Corporate Office whenever assistance or operational guidance is needed.

Franchisee

• Franchisees are responsible for operating their business in accordance with the terms of the Franchise Agreement and all Cordovan Art School policies and procedures.
• Franchisees shall strive to maintain the highest standards of service including management of necessary communication with other franchisees (when applicable) and any authoritative body governing the city, county and/or state.
• Franchisees shall pay required royalties, marketing fund contributions, and other designated fees due to the franchisor in a timely manner.
• Franchisees will provide sales reports and other data tracking items when requested.
• Franchisees must follow approved guidelines regarding pricing, branding, operating hours, and business operations while protecting all confidential and proprietary information.
• Franchisees are expected to create a positive and safe work environment, communicate effectively with team members, provide fair compensation for each team member relative to their job role and responsibilities, be honest, and deliver regular feedback and coaching.
• Franchisees should lead by example, foster open communication, support their team’s development, and remain committed to the success of their business and be a role model. Strong leadership is essential. Your team will follow your lead!
• Franchisees should represent the Cordovan Art School brand with integrity and provide exceptional customer service to every customer.

Franchise Team

• Identify opportunities for mutual marketing efforts with neighboring franchisees when possible and include members of the franchise team for larger scale marketing efforts.
• Protect the integrity of the brand – a franchise system is only as trustworthy as the brand that is behind it, and our franchisees are the brand!
• Participate in directives set forth by the Franchisee Network & Council when they occur. This will allow all franchisees to address issues of common concern together.
• Work together to protect all proprietary brand materials from scrutiny or casual review by competitors, visitors, or the public.

Customers

• Customer referrals are the best method of marketing your services. A happy customer is more likely to spread the word about your business!
• The customer is always right, even when they are not! Remember, a happy customer is the best type of customer.
• A customer could become a future team member or even franchisee! Treat every relationship as a potential lead!

Field Consultants

Your primary point of contact for operational support is your Field Consultant. Field Consultants are partners in your success and are available to provide guidance, training, and problem-solving assistance.

Field Consultants can assist with:

• Understanding and implementing brand standards
• Improving operational efficiency and service delivery
• Vendor and contractor relationships
• Customer service and customer experience
• Marketing and community outreach
• Networking and referral opportunities
• Recordkeeping and reporting
• Facility maintenance and upkeep
• Staff scheduling and team management
• Hiring, onboarding, and employee development
• Collaboration and communication within the franchise network

Contact Info

John Howell
Phone: 512-673-8646
Email: john@cordovanartschool.com

Matt Fowers
Phone: 702-378-4517
Email: matt@cordovanartschool.com

Studio Audits

Representatives of the Corporate Office, including Field Consultants, may periodically visit your studio or territory to provide support, training, and operational guidance.

The purpose of an audit, or field visit, is to provide support, training, encouragement, and accountability. Audits are designed to help studio owners and managers strengthen operations, maintain brand standards, and improve overall profitability. While most visits will be scheduled in advance, occasional visits may occur without prior notice.

Audits should be viewed as a collaborative process focused on continuous improvement and long-term success.

During a Studio Audit, the Franchisee Owner (or designated Manager) will work together with the Field Consultant to complete the Audit. The purpose of the audit is to identify strengths, opportunities for improvement, and areas where additional support or training may be beneficial. At the conclusion of each visit, the franchisee may be asked to complete a Field Visit Confirmation Form acknowledging that the visit occurred.

The Franchise Audit Form and evaluation criteria are outlined in the following section.

Studio Audit Form

Field Visit Confirmation Form

The Corporate Office will also conduct regularly scheduled meetings and conference calls to share important information and best practices. Attendance at required meetings is mandatory.

Setting Up Your Business

Setting Up a New Business Entity

One of the first decisions the franchisee will need to make is how to structure the business. The following information from https://www.sba.gov/ will familiarize franchisees with the various business structures available, however, franchisees are expected to seek guidance from an attorney local to them for specific business structure advice. Once you determine the type of business, you can file for a new business entity using a service such as www.LegalZoom.com

Sole Proprietorships do not produce a separate business entity. With this model, you have complete control over your business but can be held personally liable for debts and liabilities.

Partnerships occur when two or more people own a business together. A limited partnership has one primary partner whereas all partners are equal in a limited liability partnership.

An LLC (limited liability company) protects you from personal liability while avoiding corporate fees and taxes.

A Corporation is a legal entity that is separate from its owners. C corporation, S corporation, B corporation, close corporation, and nonprofit corporation are subtypes of this business model.

A Cooperative is owned by the shareholders who benefit from its services.

Business Name

The franchisee may not use the trademarks of the Franchisor as part of the franchisee’s legal business name when the franchisee incorporates. Instead, franchisees will be required to form a D/B/A (Doing Business As) – a business entity is formed and is acting on behalf of Cordovan Arts Franchising, LLC (example: Roger Smith, LLC D/B/A Cordovan Art School *city*). The franchisee should only use or refer to the name, “Cordovan Art School” when referencing:

(1) our products or services or;

(2) the Franchisor organization or;

(3) The Cordovan Art School franchise business opportunity.

Franchisees will be required to establish their own business entity (example: Robert Smith, LLC), to which will then operate as Doing Business As (DBA) Cordovan Art School *City*. (Example: Robert Smith, LLC DBA Cordovan Art School Nashville)

Business name examples:

Acceptable

Robert Smith, Inc.

d/b/a Cordovan Art School Nashville

Not Acceptable

Cordovan Art School, Inc.

Cordovan Art School Corporation

Cordovan Art School of (locale) Inc.

Registering Your Business

Some business types require registration with your state government. Registering your business will require navigating the agencies of the state in which you are located. It is advised that you seek legal counsel for specific inquiries regarding registering your business.

If you establish your business as a sole proprietorship, you will not need to register your business at the state level. However, many states require sole proprietors to use their own name for the business name unless they formally file another name. This is known as the Doing Business As (DBA) name, trade name or a fictitious name.

Business Checking Account

A business checking account will need to be opened to manage financial aspects of the franchise. Developing a close-knit working relationship with a bank in your area can benefit your business. Fostering a personal relationship with a Business Banker near your franchise location opens the door for honest advice on the proper accounts to open.

The following items should be considered:

• A Business Checking account with a flat monthly fee or no fee at all is preferred
• Checks should be printed with the business name and address clearly identified
• The account must have the ability to conduct an Electronic Funds Transfer (EFT) or Automatic Clearinghouse Transfer (ACH) for payment of all royalties, marketing contributions and other franchise-related fees
• Franchisees may be required to authorize the franchisor to automatically withdraw the funds owed according to the Franchise Agreement

Checks, Letterhead, Forms

Verify all business-related forms clearly indicate independent ownership of franchise and business. Cordovan Arts Franchising, LLC has designed a distinctive logo to use on checks, letterheads, envelopes, and business cards to establish immediate recognition as a Cordovan Art School franchise owner. However, the franchisee’s personal identification must always be included when using the Cordovan Art School name and logo.

A sample business card may read:

“Cordovan Art School,

Independently owned and operated by Robert Smith, Inc.”

Or

“Cordovan Art School,

Robert Smith, Inc., Owner”

Cordovan Arts Franchising has developed a standard package of branded materials including business cards, flyers, promotional materials, banners, etc. These printed materials can be customized by the franchisee and ordered through a 3rd party website. Any materials not found on the American Solutions for Business website should be ordered through the design team of Cordovan Franchising LLC. All materials must be designed, developed, reviewed and approved by Cordovan Arts Franchising, LLC before they are used. You should always have a supply of business cards readily available. Be sure to know in advance if there is a need to order a new batch of cards.

Email Correspondence

Any email correspondence communicated to customers is subject to verification and/or review by Cordovan Art School. Cordovan Art School prioritizes uniformity and brand consistency in marketing material and email correspondence. Consistent use of the trademark builds goodwill and recognition with the consuming public. Franchisees may be provided an email address during Franchisee Training.

Cordovan Art School requires all emails feature a disclosure at the bottom of every message, such as with the signature block, notifying recipients that the franchisee is an independent business operator and separate from the Franchisor.

“This correspondence is on behalf of a franchised entity of Cordovan Art School and does not reflect the views of the Franchisor.”

In the ‘Signature’ section of the email, it is highly recommended that you list the following disclosure:

The information in this email may be legally privileged or confidential information intended for the use of the individual or entity named in the TO: and/or CC: field(s) ONLY. If the reader of this email is NOT the intended recipient, you are hereby notified that any dissemination, distribution or copying of this email is strictly prohibited. If you have received this email in error, please notify us by replying to the sender in the FROM: field and destroy this email. Thank you.

Your Status as a Franchisee

You as the franchisee agreed to be represented as neither an agent, a partner, nor an employee of the Franchisor, Cordovan Arts Franchising, LLC, when the franchise agreement was signed. It must be made clear to the public that the franchisee’s business is a separate and distinct legal entity enfranchised to use the name “Cordovan Art School” and logo in daily business operations apart from all corporate locations.

Pre-Opening Checklist

ADD MATT’S CHECKLIST HERE

Franchisees must have a comfortable understanding of how to structure the entity of their business. Franchisees will be responsible for utilizing their own legal counsel for establishing their own business entity. This section of the manual describes the necessary components, resources, and software required for establishing and operating the business per franchise standards.

1. Sign the Franchise Agreement – Become the next Cordovan Art School Franchisee!
2. Set up a New Business Entity
   • File for a new business entity (franchisees are required to utilize the services of their own attorney or legal counsel while adhering to all terms stated in the Franchise Agreement).
   • Acquire and submit all business registration information (will depend on the market in which the franchisee is based).
3. Find a Location
   • Franchisees may utilize the assistance of a Commercial Real Estate agent.
4. Acquire Equipment and Technologies
   • The franchisee must purchase all Required Equipment.
   • The franchisee must purchase all Required Software.
5. Acquire Insurance
   • Insurance “types” and policies must adhere to the terms stated in the Franchise Agreement.
6. Satisfy all Business Compliance Requirements (Market-Specific)
   • Business License
   • City or Municipal Permits (or similar)
7. Acquire and Become Familiar with all Required Software
8. Commence Phase I of “Franchisee Training” at a Location Designated by the Corporate Office:
   • Conduct an Overview of all Facility Services:
   • Conduct Sales Training
   • Conduct Personnel Training
9. Conduct Phase II of “Franchisee Training” at the franchisee’s office.
   • Review “Business Readiness”
   • Review Email.
   • Review Marketing Materials.
   • Review proper customer interaction etiquette.
   • Review establishment of the office.
10. Assess Inventory
11. Conduct Initial Marketing
12. Plan a “Grand Opening” launch for the franchise in its new territory.
13. Verify online presence, including use of social media platforms, Google and Cordovan Art School website and related web tools.
14. Launch!

• Become familiar with utilizing daily internal communication systems.
• Keep track of expenses.

Steps to Opening

Please note that the following steps to opening your franchise location are intended as a general guideline. The process is often fluid and may vary depending on market conditions, permitting timelines, vendor availability, and other factors specific to your situation. As such, these steps may not occur in the exact sequence listed below, and certain tasks may overlap or require adjustment based on your location’s unique circumstances. The Corporate Office will provide support and guidance throughout the process to ensure a smooth and timely launch.

Site Selection

Site selection begins by having a complete understanding of the geographic and demographic characteristics of your market and area. As a new business owner and franchisee, you should become familiar with the trends and nuances of your selected market. This will allow you to match your business location with demographics, lifestyle habits, typical driving time, and other regional preferences.

The size of each classroom ranges from approximately 300 square feet (small classroom size) to approximately 600 square feet (large classroom size).

The kiln room should be a minimum 250 sq ft for a 2,000 sq ft studio (small studio), and larger for a larger-size studio.

The size of a new Cordovan Art Studio will depend on market factors such as density of population, average household income, rent & NNN expenses, build-out costs, etc.

There are many things to consider when identifying a location. The following resources are a starting point to guide the process.

• Commercial real estate agencies
• Searching for ‘For Lease’ or ‘For Rent’ signs in commercial areas
• Browsing online bulletins
• Online real estate services to consider:
• LoopNet– https://www.loopnet.com/
• Cityfeet – https://www.cityfeet.com/
• Showcase – https://www.showcase.com
• Crexi – https://www.crexi.com

Size and Layout

• 2,000-3,000 square feet.

Location Type & Visibility

Preference is given to retail shopping centers and strip malls that are:

• In centralized areas of commerce
• Near residential neighborhoods, schools, and community centers
• Surrounded by complementary businesses (e.g., child enrichment businesses such as math and reading tutoring centers, dance/music studios, gymnastic studios, cafés, family services)
• Locations should provide strong street visibility and foot traffic, as well as opportunities for exterior signage.

Demographics

Ideal markets are those with a strong population of:

• Families with children
• Young professionals
• Active older adults
• Target areas with middle to upper-middle income households with disposable income, who are likely to enroll in weekly enrichment programs and summer camps.
• In high density population areas, within a few miles of multiple elementary schools.

Accessibility & Parking

• Must be easily accessible from major roads or residential areas.
• Locations should offer ample free parking for students, parents, and event attendees.
• Must meet ADA accessibility requirements, including restrooms and entryways.

Zoning & Permits

• Site must be properly zoned for educational, recreational, or arts-related use.
• Capable of securing any required local permits for group classes, day camps, and private events.
• Site must meet fire, health, and safety codes applicable to instructional and event-based businesses.

Lease Requirements

• Franchisees are encouraged to pursue multi-year leases (5 years preferred, with two (2) 5-year options to renew the lease at that same location).
• Tenant improvement allowances or flexibility in space customization is a plus.
• Prior written approval from the Corporate Office is required before signing any lease agreement to ensure the space meets all operational and branding standards.

Additional Considerations

• Quiet, safe, and family-friendly surroundings are essential.
• Avoid co-tenants that may produce excessive noise, odors, or congestion (e.g., nightclubs, vape shops, industrial tenants, and any type of co-tenants that are not kid-friendly).
• For locations offering wheel throwing or pottery, additional considerations such as proper ventilation, water access, and flooring durability must be evaluated.

Sample Floor Plans

A typical Cordovan Art School studio includes:

• 3–4 flexible-use classrooms
• Lobby or reception area
• Storage room for art supplies
• Kiln room
• Restroom facilities (ADA-compliant where required)

Studios should be designed to maximize instructional classroom space while maintaining an efficient flow for students, parents, staff, and guests.

To help franchisees understand space requirements and layout flexibility, Cordovan Art School has developed sample floor plans based on different square footage ranges. These examples illustrate how classrooms, lobby space, storage, restrooms, and support areas can be arranged to create a functional, efficient, and welcoming studio environment.

While every location is unique, the sample layouts demonstrate the key operational components required for a successful studio and provide guidance for space planning and design.

2,500 Sq. Ft.

3,100 Square Feet Sample Layout with Large Lobby (for PYOP)

3,100 Sq. Ft.

Sample Layout showing 3,100 square feet, with large lobby area for PYOP

Build-Out

The franchisee is responsible for all aspects of the studio build-out, including coordinating contractors, obtaining required permits, complying with local building codes, and completing the project in accordance with Cordovan Art School brand standards and approved specifications.

Site Inspections

Franchisees will consult an attorney to investigate and understand all operational compliance laws in place within their city and/or market. It is the franchisee’s direct responsibility to be compliant with all local, state, and federal laws and regulations. The list below is a starting point for consideration and is not all-inclusive:

Lease Considerations

Negotiating a commercial lease is serious business. It is recommended that you enlist the aid of a qualified commercial real estate attorney to guide you through the process. Once you have selected and been approved for a location, you and your attorney will negotiate a lease to secure the property. The following are some of the commonly negotiable lease provisions:

• Price – This is the provision that everyone begins with and spends the most time on. The landlord invariably starts out with a price that exceeds what they expect to get. Remember that the best way to get your target price is to create a rent budget and stick to it. There is always a tendency to “split the difference.” If the landlord wants $20 and your target is $15, your initial bid should be no more than $10. The landlord will immediately tell you that your offer is “significantly under the market.” Do not be dissuaded.
• Rent Escalation Clause – Fixed rent over long-term leases is relatively rare. Landlords may insist on annual increases based upon the percentage increases in the Consumer Price Index (CPI). If you are confronted with such a request, try to arrange that the CPI does not kick in for at least 2 years and cap the amount of each year’s increase (for example, no more than a 3 percent increase in any year). A sample clause for doing this would read as follows: “Any rent increases under this Lease shall commence no earlier than two (2) years after the date of the commencement of this Lease. The maximum amount that the rent may be increased in any one year (starting in the third year of this Lease) shall be three 3% over the beginning base rent under this Lease.” (Note: Make sure that your business plan projections adequately reflect such increases.)
• Square feet – Make sure your lease is predicated on a specific number of square feet, not just a dollar amount. If for any reason the number of square feet you lease is reduced, your rent should drop on a pro-rata basis. It is important to ask for a Site Plan of the space, as each “extra” foot of real estate can add significant expenses to your bottom line.
• Tenant finish-out – Most leases these days provide some if not all allowance for tenant finish-out, also called tenant improvements or build-out. There is a direct relationship between rental price and finish-out allowance. The higher your rent, the more you should expect for finish-out. The lower your rent, the lower your finish-out tends to be. During the lease investigation process, it is important to compare an estimated total finish-out expense from several reputable licensed contractors.
• Entry by Landlord – The landlord has the right to enter your business during normal business hours. Negotiate that there can be no disruption to your business at such time.
• Common Area Maintenance – Common area maintenance (CAM) is a catchall for the expenses of operating the facility. It is also a tempting place for landlords to “bury” every imaginable cost and seek huge increases in the gross check you submit each month. Make sure CAM specifically excludes any capital improvements. Seek an annual increase cap on CAM charges (do not allow yourself to be surprised by a 25% increase in CAM charges from year one to year two – this is common). Demand an annual accounting of CAM charges levied by the landlord and reserve the right to view paid invoices.
• Triple Net Charges – Calculation of triple net charges must be based on the total leasable portion of the facility, not just the leased portion. Your fraction of the charges should be based on the square footage divided by the total leasable square footage of the center. It is encouraged that you obtain these numbers in writing. Avoid a situation where a 20,000 square foot tenant leaves the center and everyone who remains then divides the triple net charges.
• Caps – Commercial leases have a myriad of charges that may potentially be assessed to the tenant. It is possible to have these charges removed entirely, and that should be your goal. In the absence of having a specific charge removed, you should at least seek a reasonable cap, so you can define your maximum exposure. For instance, it is common for the landlord to demand that the tenant pay a share of the landlord’s deductible in the event of a casualty loss. If you cannot have this provision removed from the lease, language such as “not to exceed $250 annually” limits your financial exposure and would be sufficient.
• Common areas – Most leases contain a provision that states the landlord may do anything it wishes with the common areas. The common areas are essentially any portion of the building not leased to a tenant (sidewalks, parking lots, flower beds, etc.). Seek protection in the event the landlord makes a material change to the operation of your business because of a change in the common areas.
• Repairs – As a tenant, the landlord will expect you to not only maintain your premises but will also likely expect you to make certain repairs. The landlord should be expected to keep the foundation, exterior walls and roof in good condition and agree to repair them when needed. Get this in writing, along with a limited period in which the landlord agrees to conduct all repairs.
• Restriction on use – You do not want to spend a year or two building a successful business and have a competitor open in the same shopping center. It is wise to demand a restriction in the lease that prohibits another tenant from offering the same or similar services as yours.
• Bail-out – Sometimes a thriving center takes a downhill turn throughout the term of the lease. This can happen when an anchor tenant vacates the center causing traffic to drop, or because of local factors such as a road is re-routed. You do not want to be stuck as the last tenant in a dead center. Firmly seek a provision which allows you to terminate your lease if total occupancy in the center drops below a certain threshold (perhaps 50%).
• Eminent Domain – Eminent Domain is a concept whereby the government claims all or part of a property for the public good. Some leases may limit your rights under eminent domain. Seek protection so that if any portion of your premises is taken, you may terminate the lease.
• Assignment and subletting – Someday, you may wish to assign your lease or sublet your premises. You may choose to sell your franchise at some point. Be sure you have the right to reasonably assign your lease. Make sure the landlord does not have the right to cancel your lease if you wish to assign it to another party.
• Late charges – Late charges often run approximately 5-10% of the monthly rent. Seek a reasonable limit to late charges and negotiate a waiver of late fees to occur not more than once per year during the lease.
• Radius restriction – Sometimes, landlords restrict your ability to open another business/franchise within X miles radius of the leased premises.
• Personal guarantee – Many landlords will require a personal guaranty of the lease amount. This means that even though you signed your lease as an officer of your corporation, you are personally responsible for the lease amount. In effect, you are putting all your savings and most of your personal assets on the line. Try not to guaranty the lease if possible.
• Holding over – Every lease contains a provision dealing with a situation of the tenant “holding over” in the leased premises beyond the end of the lease. Many leases state that they will maintain a month-to-month basis, although some may treat your hold-over as a renewal for a new term. Some will also say the rent shall increase by the same percentage as in the prior term. Avoid any fixed or liquidated damages provisions in such a case.
• Relocation – Many leases contain a provision whereby the landlord can relocate the tenant within the center if the landlord needs your space for another tenant. This must be by mutual consent. The landlord must also agree to pay for all costs associated with the relocation (redecorating or building modifications; new stationery and business cards; utility and phone relocation costs; new brochures and marketing materials, etc.) prior to granting of consent by the tenant. If this is a term in the lease, ask for a substantial amount of notice (at least 120 days) and contiguous space.

Lease Agreement Provisions

The Corporate Office will need to review and approve a space that is leased or purchased with the intent of operating a Cordovan Art School franchise business. Approval of a lease shall be conditioned upon acceptable inclusion of terms in the lease and reasonably required provisions including:

• A provision reserving Cordovan Arts Franchising, LLC the right, but not the obligation, at their election, to receive an assignment of the leasehold interest without payment of any assignment fee or similar charge and without any increase in rent or other fees upon termination or expiration of the franchise grant. The lessor agrees, before the effective date of any assignment of the lease to Cordovan Arts Franchising, LLC (or its designee), the franchisee shall be solely responsible for all obligations, debts, and payments under the lease.
• A provision requiring the lessor to provide Cordovan Arts Franchising, LLC with a copy of any written notice of deficiency sent by the lessor to franchisee, and granting the right (but not the obligation) to cure any deficiency under the lease should franchisee fail to do so within fifteen (15) days after the expiration of the period in which franchisee may cure the default.
• A provision requiring the lessor to provide Cordovan Arts Franchising, LLC (at the same time lessor provides to franchisee) a copy of all lease amendments and assignments, and a copy of all letters and notices lessor sends to franchisee relating to the lease or the leased premises.
• A provision permitting Cordovan Arts Franchising, LLC to enter the leased premises to make any modifications or alterations necessary in order to protect the brand system and trademarks without being guilty of trespass or any other crime.
• A provision allowing franchisee to display the trademark in accordance with the specifications required by the Brand Standards Manual, subject only to the provisions of applicable law.
• A provision prohibiting the premises from being used for any purpose other than the operating of a Cordovan Art School franchise.

Facility Utilities

Inquiring about utilities and services well in advance of your proposed opening date will help to avoid complications during the grand opening. Identify how much advance notice is required for installation and connection of services and establish a routine maintenance schedule. Also, pay any starting deposit and set up automatic monthly payments when possible.

At a minimum, the following services will need to be arranged:

• Electricity
• Gas
• Water and sewer
• Phone
• Internet
• Trash collection

The additional services are worth consideration:

• Window washing
• Snow removal (where applicable and if not handled by landlord)
• Glass and window repair (as needed)
• Sign maintenance (as needed)
• Plumbing (as needed)
• Locksmith (as needed)

Dedicated Business Phone Line

When operating a franchise, it is essential to have a dedicated business phone number. A separate business phone number reinforces a professional image for your franchise. By having a dedicated line for your Cordovan Art School franchise, you streamline communications. This ensures that calls related to franchise operations—such as customer inquiries, service requests, and vendor interactions—are handled separately from personal or other business calls, leading to more organized and effective communication management. This clarity can be crucial for maintaining accurate records and tracking business performance, making it easier to address any issues or assess the effectiveness of your communications.

Adhering to these guidelines is important for compliance with the franchisor’s standards and operational procedures. A dedicated business phone number is a fundamental tool for managing your franchise effectively. It supports professional communication, enhances customer service, ensures operational clarity, and helps maintain compliance with franchise standards.

Required Software and Technologies

A minimum standard is required for tracking and reporting of services and transactions. Franchisees will be required to purchase certain software and related technologies for operating the franchise business. Certain software may also be used for scheduling team members and managing marketing needs. The list below is subject to change.

Kiln

Kiln Installation Requirements

Provided by: The Pottery Consultant©
American Ceramic Supply Company, Inc.

What your contractors and electricians need to know©

Kilns and Wiring:

The only National Uniform Code requirements are that the kilns sit 18″ from the walls for all brands (except Paragon which can sit 12” from walls) and sit on their stands on concrete – if the walls are non-combustible; and if you are taking that into consideration, there should be no problems. If combustible walls, all brands must sit 36” away from wall. All brands must sit within 25 feet of the electric panel (except Skutt which can sit within 40 feet.) This is not as the crow flies, but taking into consideration up a wall, across a ceiling, down a wall, etc. If you deviate from this, copper wire sizes will have to be adjusted and this can be expensive.

Kilns are safer than ovens in restaurants. Kilns are not going to catch on fire or catch anything around them on fire. The ONLY way there might be a problem is if the electrician does the wiring wrong. But if we have in writing that the wiring will be 240V or 208V, (In the kiln world, 220 is actually for Europe) and single phase or three-phase and have ordered kilns that are according to that fax, there should be no problems.

Once lease is signed, have electrician (that you are SURE you will use for job) email me or fax (817-536-7120) the following information:

How many amps are coming into the building? ___________ (I recommend minimum 200 amps for commercial spaces)

Volts – 240___________ or 208 ______________

Phase – Single____________ or Three____________

Where is the electric panel on the floor plan? _________________ (within 25 ft of kiln? Or how far will the kiln sit from the existing electric panel?)

Then once you have picked your brand of kiln and model, I can email back to him the exact and proper copper wire, breaker and if receptacle or hard wire. Each kiln is different. Some kilns can use receptacles if 240V, single-phase models, but in the long run, if they can be hard wired, even your electrician should agree, it is better. In a brand-new commercial space where you can dictate amps, volts and phase, again I would recommend 200 amps, 208V and three-phase. Most of the time, we will not have this luxury. Your kiln may use up to 60-80 amps per kiln.

Venting:

As far as the venting goes, kilns will be ordered pre-drilled and the downdraft vent sits under the kiln and goes to the motor/blower and the ducting attaches to it and goes outside – either out the back wall just like a dryer duct – and that is what the contractors will buy – 4″ wide, flexible aluminum ducting to attach to the vent and the wall mount to go outside.(they also get the wall mount for you and install it)….OR….the ducting can go up through the ceiling and up through the roof. Most code says that if it does go up through the roof…. the part that extends from the ceiling to the roof must be rigid…. again….4″ wide, and the contractor can get that from Home Depot or Lowes, as well. And if up through the roof, your lease may dictate you must use the landlord’s roofer.

You can forward this to ALL concerned parties – contractor and electrician and if they need to me to talk to them, we can make arrangements for me to do so. I have copy of the National Mechanical Uniform Code requirements for kilns for your contractors (for the sake of permits) when the time comes. I will visit Vent website with you and/or your contractor so everyone fully understands the technology, if necessary.

Electrician Name___________________________ Phone_______________________
Company_____________________________Email____________________________

The make and model of a kiln can vary from studio to studio. Some things to consider are the size of the kiln, the brand, etc. An example of one of the kilns used at some of the Cordovan Art School studios is shown below:

Paragon TnF-27-3

1. 28″ x 22 1/4″ deep, Cone 10, 8.11 Cu. Ft.
2. 3-phase
3. 208 volts
4. 33 Amps

PYOP Paint Bar Shelving System

Furniture & Decorations

See FFE. Work together with your Field Consultant for initial set-up and purchasing.

Furniture, Fixtures, & Equipment (FFE)

Original Artwork

Original teacher and student artwork should be hung throughout the studio to give the space character and personality

Required Equipment & Supplies

To ensure consistent service delivery from any Cordovan Art School location, all franchisees must maintain the same minimum standards of compliance.

The required equipment to operate a Cordovan Art School franchise may vary based on the size of the facility, territory it serves, or legal requirements of the city. The Corporate Office must approve the purchase or leasing of equipment and/or materials. This equipment list is subject to change

See FFE. Work together with your Field Consultant for initial set-up and purchasing.

Furniture, Fixtures, & Equipment (FFE)

Required Vendors

The Corporate Office has a working relationship with the following vendors to assure product quality and consistency. You will be required to purchase your materials from this approved list of vendors unless prior approval from the Corporate Office is obtained. This list is subject to change.

Required Insurance

The Franchise Agreement indicates the franchisee must protect both the business and the Franchisor (Cordovan Arts Franchising, LLC) from liability and losses and requires the franchisee purchase the essential coverage listed below from an insurance company licensed in the franchisee’s state of operation and having at least an “A” rating classification, as indicated in A.M. Best’s Key Rating Guide. Required insurance coverages may be obtained by separate primary policies or in combination with umbrella or excess liability policies.

The franchisee must list the Franchisor, Cordovan Arts Franchising, LLC as an ‘Additional Named Insured’.

The franchisee must forward a copy of the certificate of insurance to the Corporate Office within 30 days of signing the Franchise Agreement. The certificate must state the franchisee’s policies may not be canceled or altered without at least 15 days prior written notice.

1. “Special” causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible)
2. Business interruption insurance covering at least 12 months of income
3. Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an “occurrence” policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit
4. Workers Compensation coverage is required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days’ prior written notice of cancellation.
5. EPLI (Employment Practices Liability Insurance)
6. E & O (Errors & Omissions)

Franchisees must maintain all required insurance coverage at all times. A current certificate of insurance must be provided to the Corporate Office annually upon renewal.

Required Licenses and Permits

It is the franchisee’s sole responsibility to acquire and verify all necessary licenses for operating the business. Franchisees are required to seek verification from their own attorney regarding compliance with all local and Federal licensing and permit requirements for their locale.

Franchisees may be required to seek a state, county, or city license on their location. Requirements may necessitate completion of an application, testing, bonding, establishing proof of insurance, and sharing proof of continuing education.

Current required licenses and permits are listed below and are subject to change based on location:

The Small Business Administration features a thorough process that a franchisee may utilize for better understanding the requirements for launching a business:

Link: https://www.sba.gov/starting-business/business-licenses-permits

(This site is not affiliated with Cordovan Art School– franchisees are required to verify their local licensing requirements with an attorney.)

Onboarding Tools

The following administrative tools are suggestions to aid in the recruitment of your team. If you have alternative tools you would like to use, you have the liberty to do so except for altering Cordovan Art School specific forms. Contact your field consultant if you have specific questions.

Employee Handbook

It is required that you have an employee handbook for outlining the policies and procedures for your employees. This will include employment policies, standards of conduct, drug and alcohol policy, harassment policy, absences, payroll procedures, benefits, and social media policies.

A sample Employee Handbook can be provided to you upon request, but must be approved by your local attorney. If a Franchisee enlists a payroll company, such as Paychex, ADP or Gusto, these companies can provide you with an employee handbook template, which you can fill out on your own.

Team Members

Initially, it is highly recommended that you, as the franchisee, operate your Cordovan Art School yourself. Taking on this role allows you to gain firsthand experience with daily operations, student and parent interactions, and overall program delivery. This direct involvement is invaluable for building a strong understanding of the business and ensuring that it runs smoothly in accordance with brand standards.

Operating the school on your own at first also helps minimize overhead costs—an important consideration during the startup phase when establishing a stable financial foundation is key. You’ll be in full control of maintaining instructional quality and creating a welcoming, creative environment that reflects the mission of the brand.

Franchisees are not required to hire staff immediately, but they may choose to do so based on their individual needs and capacity. Optional roles include a store manager, an assistant manager, art teachers, and a general manager (a general manager would only be necessary for a franchisee that opens several locations). These positions can help support programming, scheduling, and administrative tasks as enrollment grows.

As your school develops and the demand for classes increases, it may become appropriate to expand your team. The following sections will provide guidance on hiring and onboarding staff to support your continued growth and success.

Manager

The studio manager (manager) creates the culture and vibe for the studio. The manager makes sure that everyone feels welcome, encouraged, and that they belong at Cordovan Art School.

Managers oversee teachers, assistant teachers, staff, students and parents, classes, camps, parties, PYOP, community outreach and marketing.

The manager should take full responsibility for making sure everything runs smoothly at their studio, including sales & marketing, student retention, the quality of art projects, the culture, customer service, responding quickly to customer complaints, communication, etc. If a manager doesn’t know how to handle a difficult situation, they should ask for help.

Managers are responsible for student retention, overseeing the student awards and recognitions program, and making sure the students are progressing in their skills.

On occasion, managers can set up teacher training sessions to help teachers learn new techniques, improve their classroom management skills, etc. Typically, a good time for a training session is one (1) month before summer camps to help teachers get to know each other better. The manager can hire one of the teachers to teach the other teachers a new skill. Teacher training meetings should not last more than 2 hours.

The managers are responsible for posting tuition, collecting tuition, posting late fees (late fees are posted on the 7th day of each month).

Managers follow a daily work schedule and checklist. The Daily Checklist for Managers is a tool to help managers remember what needs to be done each day to run a successful Cordovan Art School studio. There is a list for what to do during “Weekly Class” season, and a section for what to do during “Camp” season. Managers should become very familiar with this document and follow it exactly.

Assistant Manager

The assistant manager is hired by and reports directly to the studio manager. The assistant manager should be someone who is mature enough to take responsibility and make sure that the students are always safe. They should be able to make good decisions in the absence of the manager.

The assistant manager works at the studio whenever the manager is not at the studio. As such, the manager can pass off any responsibilities to the assistant manager to make the studio run smoothly. At the end of the day, the responsibility of running a successful studio is up to the manager. So, the manager should assign whichever tasks to their assistant manager that will help them get things done efficiently.

During camps, the assistant manager works the afternoon shift, and the manager works the morning shift.

Teachers

Teachers at Cordovan Art School are responsible for teaching art projects based on lesson plans provided to them. Occasionally, teachers will be responsible to create and teach a lesson plan that they create on their own (teacher’s choice). All lessons and teachings must align with the Art Principles and Techniques approved by Cordovan Art School. While the school provides a framework, teachers are given creative freedom to adapt each art projects and mediums they use, allowing them to teach to their individual strengths. They should be skilled artists with a strong foundation in traditional art techniques, ensuring that students are consistently learning new art principles. The school’s slogan, “we create artists,” reflects the core purpose of the teacher’s role. Teachers are required to submit their “teachers’ choice” lesson plans to the manager in advance for approval.

Assistant Teachers

Assistant teachers are typically teenagers who help the Art Teacher during camps. They are hired whenever extra hands are needed in the classroom (usually when a camp reaches 15 students, or if the camp has younger students who need more hands-on help.) Assistant teachers are hired only to help with camps for ages 5-7 or ages 8-12. Often, Assistant Teachers are Cordovan Art School teen students who want a summer job at Cordovan.

Managers should review Form 4.3 “Assistant Teacher Responsibilities” with the assistant teacher after they have been hired, and with the Teacher, so they know how to effectively work with their assistant teacher. This form can also be posted inside each classroom as a daily reminder.

Recruiting

Managers should always be networking to find good-quality art teachers. Establishing relationships with colleges and local community schools (elementary, middle school and high schools) is a great place to find art teachers, especially for summer camps.

Only, when necessary, managers should run paid ads in “Indeed”. Manager’s must always get approval for spending money on any teacher ad posts on websites like “Indeed” or “Craigs List”. Often, there are options to post in a “free” section of “Indeed”. Make sure to filter by location, so the ad only shows to people in a 30-minute driving radius of the art studio so you don’t get out-of-state applicants, or people who live too far away.

Hiring

Assistant Manager

Managers conduct an in-person interview before hiring an assistant manager. The assistant manager is someone that the manager can trust to run the studio and perform many of the duties of the manager whenever the manager is not at the studio.

Assistant Teacher/ Staff

Managers conduct an in-person interview before hiring assistant teachers and staff. Typically, assistant teachers and staff are high-school age. Many times, the best assistant teachers and staff are current students or previous students of the Cordovan Art School who are looking for part-time work–especially seasonal work during camps.

Art Teachers

The manager must review the art portfolios and resumes of prospective teachers BEFORE they invite them to be interviewed. If a prospective art teacher does not have the traditional art skills to teach, they should not be invited to an interview. If the manager is not qualified to assess the skill level of a prospective teacher, they can reach out to their Field Consultant for advice. It is recommended to have a 2-person portfolio verification process to help to ensure that qualified teachers are hired–teachers who are classically trained and understand the art and design skills necessary to teach at Cordovan Art School.

The purpose of the portfolio review is to determine the drawing or painting skills of the applicant to see if they have the traditional skills necessary. Cordovan Art School does not hire teachers who do “craft” projects.

Applicants should send in at least 5 personal portfolio pieces of their own work (not the work of students they have taught in the past).

If the prospective teacher’s portfolio shows a high level of competency and skill, then the manager can invite them to come in for an in-person interview.

Teachers should be assigned to classes that they are qualified to teach based on their knowledge of art and design (this is determined by looking at their portfolio), and their personality (this is determined during the in-person interview). The skill level required to teach a class for teens and adults is different from the skill level required to teach a class for ages 5-12. All teachers no matter what class they are assigned to teach MUST be friendly, kind, have a positive attitude, and be able to represent the values of Cordovan Art School.

Applicants will fall into one of these categories listed below:

1. Do NOT HIRE: This teacher does not have the skills necessary to teach any age group at Cordovan Art School.
2. SKILL LEVEL: ASSISTANT TEACHER: This teacher has a student-grade portfolio, so they might be a good fit as an “Assistant Teacher”, especially if they are friendly and have a happy attitude. As they improve, they may be promoted to an Art Teacher in the future. (this is the case with many high school students who can start as an Assistant Teacher and grow into the role of Art Teacher)
3. SKILL LEVEL: AGES 5-7: Teachers for this age group don’t need quite as much art skill as teachers who teach the older age groups. Personality is slightly more important than artistic talent, although they still must have a good understanding of traditional art principles (and not crafts).
4. SKILL LEVEL: AGES 8-12: Teachers for this age group must have a solid understanding of traditional drawing and painting skills. Their personal artwork must show a solid level of competency and show an understanding of the traditional principles of art & design. They must know how to execute on a personal level (you can’t teach what you don’t know)
5. SKILL LEVEL: TEENS AND ADULTS: Teachers for this age group need to be highly skilled artists with a very good understanding of the principles of art & design. Their personal artwork must demonstrate they have the necessary knowledge and skills.​ It is important that the teacher for Teens and Adults has more technical skills than the students they will be teaching.

Managers must respond back to ALL portfolio submissions within 24 hours to let the candidate know that they received the job application along with the artist’s portfolio.

Before a new teacher teaches their first class, the manager must have completed the following requirements:

• Received back the Teacher’s signed contract and hiring paperwork
• Received back the “Art Teacher Responsibilities” form, signed by the teacher.
• Conducted a studio tour, including an orientation of art supplies
• Input the Teacher’s contact information into the management software, Jackrabbit Class
• Assigned the Teacher to the class(es) they will be teaching in the management software, Jackrabbit Class
• Verified the Teacher has access to the lesson plans
• Made sure the Teacher has shadowed 2 classes from experienced teachers
• Made sure the Teacher’s bio and portfolio images are showing on the Cordovan Art School website.

See Form: New Teacher Checklist click here

Development of a Job Posting

Hiring a new team member will begin with a job posting. The following is a template for developing a job posting. It is important to keep descriptions brief and accurate. It is also important to identify the minimum required qualifications/skills (example: 5 years of hands-on experience in the field, license to perform skills required) and differentiate them from recommended qualifications/skills (example: CPR certification, college degree specific to field).

• Provide a brief overview of the company.
• Provide a brief overview of the open job position.
• List specific job roles and responsibilities.
• Minimum required qualifications/skills.
• Recommended qualifications/skills.
• Required application items and specific steps to apply.
• Application deadline.

Job Posting: Manager

Full-Time Employment: 32-40 hours per week

Office Manager

Compensation: $20/ hour

Cordovan Art School

Address:

Job Start Date:

Office Manager Job Description:

– 32-40 hours a week.

– Manage the scheduling of classes and instructors

– Create a happy, friendly and welcoming environment

– Greet every student and parent by name

– Learn to use customer management system

– Customer billing

– Answer phones & emails

– Oversee the local marketing and promotions of the school

– Work to increase student enrollments and find new business to business partnerships

– make sure that all information about classes is updated and current on the website

– Create monthly newsletters and manage local social media sites

– Create relationships with local businesses, local influencers & bloggers to Generate leads, referrals, and new business opportunities through prospecting and networking

– Be involved in the community arts activities

– Making sure art studio space is clean and tidy

– Interview, hire and oversee other employees as needed

Key Qualifications:

– Friendly, confident, outgoing personality—loves talking to people

– Gets along well with kids ages 6 + up and adults

– Sales skills

– Customer Service skills

– Strong organizational skills

– Proficient in Word and Excel

Other Preferred skills:

– Ability to work with Photoshop, Adobe products

– Loves creativity/ art

– Experience with the Arts/ Humanities

To find out more about the Cordovan Art School, visit us online at www.cordovanartschool.com.

To apply for a position to join the creative environment at the Cordovan Art School please submit your resume to YourEmail@cordovanartschool.com.

Job Posting: Art Teacher

Interviewing

After the job posting is public, you should wait until the application deadline to review applicants or adjust the posting. Adjusting the posting or reviewing the applicants before the deadline may unintentionally exclude an exceptional candidate.

When reviewing the applicants, start by excluding any applicant that does not meet the minimum required qualifications/skills. Then, prioritize your top candidates to perform a phone pre-screening. Pre-screening allows you to weed out those who embellish on their applications and get a better sense of specific skill sets, character, attitude, and personality. It also allows the applicant an opportunity to ask questions and see if they want to pursue the position.

Suggested topics include:

• Employment history
• Related work experience
• Ability/willingness to meet the needs of the team (schedule, job roles, etc.)
• Any other specialized skills not listed on application

If all the applicant’s information is verified and you are satisfied with the results of the phone screening, schedule a face-to-face interview with the candidate. Although interviewing takes time, you should conduct personal interviews with everyone you hire. This personal contact gives you another opportunity to evaluate the suitability of an applicant and may protect you from losing time and money by hiring the wrong person.

Consider these guidelines when completing a face-to-face interview.

• Most candidates are nervous during interviews! Try to make the applicant feel comfortable.
• Start the interview by providing information about yourself and the company.
• When you ask a question, wait for the applicant to respond; resist the temptation to converse. Silence can be a powerful tool for eliciting additional information.
• Strive to ask open-ended questions so you can engage the applicant and see how comfortable they are at making conversation.
• Ask some role-playing questions that relate to the position to give you some insight as to how the person would handle different situations while speaking with a customer.
• Encourage the applicant to ask you questions to help determine if they are a good fit for the company.
• End the interview on a positive note. Let applicants know what the next step in the process will be and when to expect notification of your decision.

The manager should interview only qualified candidates, and they should not extend a job offer during the 1st interview. They should wait at least 1-2 days between the interview and the time that they formally extend the job offer. This time allows the manager to reflect and not feel rushed or pressured. It also sends a message to the candidate that the manager was thoughtful about hiring them.

After the interview, perform a reference check. Be sure the applicant knows you will be contacting their references and they give you permission to contact the references listed on the application.

Making the final hiring decision is the last step in the recruitment process. The candidate must meet the minimum required qualifications/skills, should demonstrate some of the recommended qualifications/skills, and should have left a positive impression during the face-to-face interview. Once you have made your decision, contact the candidate you plan to hire via phone call, deliver a copy of the job offer, and begin the onboarding process (background check, drug testing, onboarding paperwork). After the process has been initiated with the top candidate, contact the remaining candidates via phone or email to deliver the decision and gather consent to keep their information on file for future job openings.

Personnel File

Once an applicant is hired, you should immediately establish a personnel file for that employee or contractor, including the following:

• Completed Employee Application.
• Completed Personal Information Sheet
• Completed Direct Deposit Authorization
• Copies of applicable License, Permit or Certification
• Reference letter(s), if provided.
• Resume, if applicable and provided.
• Completed W-4, W-5, I-9 Forms, or any other required tax documents.
• Signed and Reviewed Employee Non-Disclosure and Non-Competition Agreement (when applicable)
• Employee Background Check
• Any other applicable paperwork related to their employment

Later additions to the file may include notations of periodic evaluations, salary history, and records of disciplinary actions when applicable. The following sample forms are below:

• Employment Application
• Employee Contact Information Form
• Candidate Evaluation Form
• Team Member Availability Form
• Non-Disclosure Agreement

Employment Application

Art teaching candidates can apply for a job on the Cordovan Art School website. Once they apply an automated email is sent to the studio manager. The manager should respond to new teacher applications within 24 hours.

The managers should email one of these two responses after reviewing the candidate’s art portfolio and resume:

1. If the manager possibly wants to hire the candidate in the future, but doesn’t have a class available– “Thank you for your interest in working with Cordovan Art School. Currently, our classes are in session and our teachers have been selected for this semester. However, we will keep your resume on file and reach out to you when a class opens up to teach.”

(Even though the manager doesn’t have a class available for a new teacher to take on, the manager should still set up an interview with the candidate and get to know him/her to see if he/ she might be a good person to hire when another class becomes available to teach)

1. If the manager will never consider hiring the candidate in the future– “Thank you for your interest in working with Cordovan Art School. We will keep your information on file.”

The manager should keep a detailed database of all teachers who have applied for a job, and who have come in to interview. You never know when you will need to find a new teacher, and keeping good records is a very important part of running a successful business.

Employee Contact Information Form

Name ____________________________________

Date of Birth ______________________________

Email ____________________________________

Phone ___________________________________

Address (Street, City, State, Zip) ___________________________________________

Emergency Contact

Name ___________________________________

Phone ___________________________________

Email ___________________________________

Candidate Evaluation Form

Candidate Name: _________________________________________________

Position: ________________________________________________________

Total: ____________

Comments:

Recommendations:

_________ Hire

_________ Reject

_________ Refer for ______________________________________________

Signature: ______________________________________ Date: ___________

Sample Job Offer Letter

MM/DD/YYYY

Candidate First and Last Name
Candidate Address
City, State, Zip

Dear [Candidate Name],

We are so thrilled that you will be joining the Cordovan Art School team!

We know that you bring a lot of industry expertise, passion, and talent, and we are dedicated to helping you succeed in your new role as [an Art Teacher] at Cordovan Art School.

Please review and sign the documents that are attached, which include (if you would like me to send these to you via docu-sign, just let me know):

• Contract
• Time Sheet
• Direct Deposit Authorization Form
• Contact Information Form
• Background Check Form
• W-9 Form (for contractors) or W-4 From (for employees)

If you have any questions, please let me know, and welcome to the team!

Sincerely,

[Your Signature]

[Your Printed Name]
[Your Job Title]

Sample Team Member Availability Chart

Name: _________________________________

Please indicate the hours you are available each day of the week.

Example

Availability Start Date: _______________________

Desired number of hours per week: _____________

Any notes/need to know?

Ex: Taking classes in September, need 3rd Sunday off.

Manager Signature: _____________________________________________________

Sample Employee Agreement

This AGREEMENT, entered into this [insert date here] between [Name of Company], a Texas limited liability company dba “Cordovan Art School” (the “Company”), and Name of Employee (the “Employee”),

WITNESSETH THAT:

WHEREAS, the parties hereto desire to enter into this Agreement to define and set forth the terms and conditions of the employment of the Employee by the Company;

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby covenanted and agreed by the Company and the Employee as follows:

1. Position; Employment Period

The Company hereby employs the Employee as its [Name of the Job Title] and the Employee hereby agrees to serve in such capacity (unless changes to the capacity are mutually made by the Employee and the Company), for the period beginning [insert date here] and ending on the date on which the Employee’s employment is terminated in accordance with paragraph 8 below (the “Employment Period”).

2. Performance of Duties

The Employee agrees that during the Employment Period they shall devote their business time to the business affairs of the Company and shall perform their duties faithfully and efficiently subject to the direction of the Management of the Company; provided that the foregoing shall not limit or prevent the Employee from serving on the board of directors of charitable organizations or other business corporations not in competition with the Company.

3. Compensation

(a) Subject to the following provisions of this Agreement, during the Employment Period the Employee shall be compensated for her services as follows:

(b) They shall receive a wage of [$15.00] per hour, subject to such increases as may from time to time be determined by the Management of the Company.

(c) They shall be entitled to such other perquisites as may be customarily granted by the Company to employees of similar rank and position.

4. Competing Businesses

During the period of his employment under this Agreement, the Employee shall not be employed by or otherwise engage in or be interested in any business in competition with the Company, or with any of its subsidiaries or affiliates, except that the Employee’s investment in any such business shall not be considered a violation of this paragraph if either (a) the Employee owns less than 5% of the equity thereof, or (b) such business is not in competition with the Company. This non-compete agreement will last throughout the period of employment and for a period of 12 months following the Employment Period.

5. Confidentiality

During and after the Employment Period, the Employee will not divulge or appropriate to their own use or to the use of others, in competition with the Company, any secret or confidential information or knowledge pertaining to the business of the Company, or of any of its subsidiaries, obtained by them in any way while they were employed by the Company or by any of its subsidiaries.

6. Non-solicitation

During and after the Employment Period, the Employee will not solicit for their own use or for the use of others, current, former or potential students/clients on record at the Company. Also, during and after the Employment Period, the Employee will not solicit for their own use or for the use of others strategic partners or employees of the Company.

7. Remedies

If at any time the Employee violates to a material extent any of the covenants or agreements set forth in paragraphs 5 and 6, the Company shall have the right to terminate all of its obligations to make further payments under this Agreement. The Employee acknowledges that the Company would be irreparably injured by a violation of paragraph 5 or 6 and agrees that the Company shall be entitled to an injunction restraining the Employee from any actual or threatened breach of paragraph 5 or 6 or to any other appropriate equitable remedy without any bond or other security being required.

8. Amendment and Termination

This Agreement may be amended or cancelled by mutual agreement of the parties without the consent of any other person and, so long as the Employee lives, no person, other than the parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof The Employment Period shall terminate as of the earliest of:

(a) The date on which the Company gives notice to the Employee if such termination is for Cause or Disability; or the last day of the month in which the date of the Employee’s death occurs

(b) For purposes of this Agreement, “Cause” means any reason which Management of the Company deems appropriate.

9. Notices

Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by registered mail to the Company at its principal executive offices or to the Employee at the last address filed by her in writing with the Company, as the case may be.

10. Non-Assignment

The interests of the Employee under this Agreement are not subject to the claims of their creditors and may not be voluntarily or involuntarily assigned, alienated, or encumbered.

11. Successors

This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business.

12. Applicable Law

The provisions of this Agreement shall be construed in accordance with the laws of the State of Texas.

13. Counterparts

The Agreement may be executed in two or more counterparts, any one of which shall be deemed the original without reference to the others.

IN WITNESS WHEREOF, the Employee has hereunto set his hand, and the Company has caused these presents to be executed in its name and on its behalf, all as of the day and year first above written.

By: _______________________________________________

Name of Employee

__________________________________________________

Date

__________________________________________________

Address

By: _______________________________________________

Name of Company, dba Cordovan Art School

__________________________________________________

Date

__________________________________________________

Address of Company

Background Check

Franchisees may elect to conduct a background check on a new employee or subcontractor. Franchisees must abide by all laws and regulations as they pertain to proper background checking procedures.

• www.clearchecks.com
• www.hireright.com
• www.backgroundchecks.com

Drug Testing

Due to the nature of the work and services provided by Cordovan Art School, franchisees may require any new team member to complete a drug test prior to starting their employment or contractual commitment.

Franchisees are free to utilize the following link to help locate an accredited drug testing facility: https://www.accrediteddrugtesting.com/drug-testing-locations/

Team Member Appearance Standards

The Appearance and Uniform Standards are recommended as follows:

Teachers and staff should always wear a BLACK Cordovan Art School apron (their uniform) while teaching or while working in the lobby. The BLACK aprons should always display all the required student awards, pins and recognitions. Teachers must purchase their aprons, or it can be withheld from their first paycheck. If a teacher loses their apron, then must purchase another one. If a teacher shows up to work without their apron, they can borrow an apron from the studio when they show up to work, and leave the apron at the studio when they leave. After the 3rd offense of forgetting their apron, the teacher must purchase a new apron.

Cordovan Art School strives to maintain a professional and functional environment. Self-expression is part of being an artist. However, all managers, teachers, and staff must not wear anything that others might find offensive or that might make coworkers, students, or parents uncomfortable. This includes clothing with profane language or clothing that includes any reference to politics, religion, sexuality, race, age, gender, and ethnicity. Please use tasteful attire while at work. No cleavage or short- shorts. Our goal is to provide a workplace environment that is comfortable and inclusive for everyone. Teachers should be well groomed, maintain a neat and clean appearance, and wear clothes that are comfortable.

Smoking or vaping is not allowed inside the studio or outside the studio while on the physical property. Teachers must not smell like smoke when they arrive to teach. We expect anyone who works at Cordovan to demonstrate common sense and professionalism. Remember that Cordovan Art School is a child-enrichment business, and it serves families and children in the community.

Payroll

Franchisees will utilize a payroll system that fits their needs and provides quick and efficient distribution of applicable wages at the end of an agreed ‘Payment Cycle’ or ‘Payment Period’. Franchisees are permitted to elect a service or software of their choosing and may seek counsel from their Field Consultant regarding payroll options.

Managers are responsible for submitting payroll every 2 weeks for ALL employees and contractors that work at their studio (assistant managers, teachers, assistant teachers, staff, etc.). Before submitting the payroll worksheet, managers must double-check for accuracy.

Recommended Software:

Gusto: https://gusto.com/

These sample payroll forms are on the following pages:

• Payroll Employer Information Sheet
• Employee Information Sheet
• Contractor Information Sheet
• Authorization for Direct Deposit

Payroll Employer Information Sheet

Payroll Employee Information Sheet

Complete this form for each employee

Authorization for Direct Deposit (Sample)

Complete this form for each employee or contractor electing to receive pay via direct deposit.

I authorize __________________________________________to deposit my pay automatically to the account(s) indicated below and, if necessary, to adjust or reverse a deposit for any payroll entry made to my account in error. This authorization will remain in effect until I cancel it in writing and in such time as to afford _______________________________ a reasonable opportunity to act on it.

Primary Direct Deposit

Name on bank account: ___________________________________________________

Bank account number: _______________________________ ☐Checking ☐ Savings

Bank routing number: ________________________________

Amount: $ ___________________ or entire paycheck: ____

*Balance of pay to:

_________ Manual (paper check)

_________ Secondary account described below

Secondary Direct Deposit (balance after direct deposit entry above)

Name on bank account: ___________________________________________________

Bank account number: _______________________________ ☐Checking ☐ Savings

Bank routing number: ________________________________

Important: Please attach a voided check for each bank account to which funds should be deposited.

Employee/Contractor signature: __________________________________________

Date: _________________

Payers: Do not send us this form with your Direct Deposit enrollment. Keep this document for your records

Orientation and Training

After completion of onboarding paperwork, the new hire will enter the training process. All staff members will participate in on-the-job training, conducted at the franchise location. The training process typically ranges from 1 to 3 days, depending on the position and individual’s prior experience.

After hiring a new teacher, the manager should invite the new teacher to take a tour of the studio, show them where all the supplies are located, and answer any questions that the new teacher has.

New teachers should be given the opportunity to shadow experienced teachers as they teach a class. This is a good way for a new teacher to learn what the classroom experience feels like, how to lead an art project, and to watch an experienced teacher as they teach and interact with their students.

The manager schedules all teacher-to-teacher mentoring. It is ideal to have the new teacher shadow two (2) different teachers. The new teacher should get paid when they are asked to shadow a class.

This hands-on approach allows new team members to learn in the actual environment they’ll be working in, helping them become familiar with daily routines, student interactions, and the overall flow of the art school. Training covers key areas such as classroom management, customer service, program delivery, and operational procedures, all aligned with the franchise’s standards and values.

By the end of the training period, staff should feel confident in their roles and be equipped to provide a consistent, high-quality experience for students and families. The franchisor will provide training guidelines and resources to support each location in maintaining a professional and creative learning environment.

Leadership

If you want your business to run smoothly, it is important to maintain quality communication with your employees. Good quality communication will not only ensure your franchise operates in a fine-tuned manner; it will ensure employee satisfaction as well.

Provide frequent and positive feedback throughout the day while working. Praise team members in public and when speaking with a customer and recognize all their achievements. If you must correct errant behavior, do so in private – never reprimand a team member in front of others.

Your email may be the ‘easiest’ method for communicating with crewmembers, however, face-to-face communication will be the most personal, as this will help employees and crewmembers achieve the ‘feeling’ they are part of a large and sophisticated organization. For this reason, the Corporate Office suggests you conduct regular meetings to discuss all issues at hand.

Staff Meetings

A crucial part of keeping employees engaged, enthusiastic, and motivated to do the best job possible is to communicate with them on a regular basis and rally everyone together. Establishing open lines of communication with employees will go a long way towards getting the most out of their performance and appreciation.

Your staff meetings may have a formal agenda or may be an open forum for discussion on the issues impacting our customers and the business at large. At the very minimum, you should conduct staff meetings six (6) times per year. Use the staff meetings to create a back-and-forth dialogue for ideas to provide your staff. Team members will quickly feel they are a truly valued part of the business.

Teacher/ Manager Chats

Managers should sit and chat with teachers at least once per semester. Managers can set up the time to chat before or after class, or whenever it is most convenient for the teacher. The purpose of this chat is for the manager to show appreciation to the teacher, listen to any needs of the teacher, offer support, encouragement, and correction (if necessary) The chats can be informal–they don’t need to be a formal sit-down. The manager sets the tone, and should always be positive and show encouraging leadership so that the teacher and the manager feel that they are working together to make the studio the best it can be. Managers can give the teacher a small gift at the meeting to help teachers feel valued (i.e. Starbucks gift card, a treat, or something that is meaningful to the teacher)

Teacher Meeting

Type: Formal

Frequency: once per year (more often if needed)

Who organizes this meeting: Manager

Purpose: To promote unity between teachers, to introduce the teachers to each other, to provide teacher training.

Typically, the Teacher Meeting is held 1-2 months prior to summer camps once all summer camp teachers have been hired, and their summer camp schedules have been sent out and accepted by the teachers.

One of the benefits to holding the teacher training meeting a few months before summer camps is to help the teachers meet one another. A contact list of all the teachers can be distributed, so that teachers can reach out to each other for help, when needed. There are times when a teachers will need to find a sub to teach their class, so it is helpful for the teachers to get to know each other and gain trust with one another.

You can have food at the Teacher’s training meeting to encourage managers to mingle and interact together (i.e. pizza, sandwiches, cookies, drinks, etc.) Let teachers know ahead of time if food will be provided.

The manager sets up the Teacher Meeting and prepares the agenda. If the manager wants to invite other team members to help with any portion of the training, they should make sure to ask those people ahead of time so they can be prepared. The meeting should last no longer than 1.5 hours, including any hands-on art-project training (optional).

The following is an example of a Teacher Meeting agenda

Scheduling Team Members

A consistent schedule provides structure for the business. A work schedule in this business may vary based on factors specific to a certain market.

The manager creates the studio work schedule for all employees and art teachers The manager makes sure that all shifts are covered and that all classes have a teacher assigned.

When a teacher is not able to teach their class or camp, it is the teacher’s responsibility to find a substitute teacher from the approved teachers list (provided by the manager), and to notify the manager. Managers should help teachers make connections with each other so that teachers can call upon each other when they need to find a substitute teacher.

Managers should remind teachers that it is their responsibility to find a substitute. If a teacher does not show up to teach a class, the responsibility falls to the manager to figure out a solution.

An essential part of managing your team is having an accurate record of the hours worked by all team members to ensure adherence to all government and local wage regulations. If your team members work varying schedules from week to week, are paid on an hourly basis, and/or are eligible for overtime pay, it is imperative they track their time each day. The Manager will typically manage the task of verifying team member’s hours worked utilizing the Jackrabbit Class Software.

Teacher Evaluations

Managers should give parents & students the opportunity to evaluate their Teacher at the end of each semester. The teacher evaluations should be given to the parents and students by the manager, not the teacher. When appropriate, the manager can share the positive feedback with the teacher as well as things that the teacher can work on doing better.

Sample Performance Review Form

Steps to Progressive Discipline

Despite careful selection, thorough training, and practicing good employee relations, you may eventually have a team member who does not ‘work out’. Before dismissing a team member, you should ask yourself these questions:

• Has the person been properly motivated?
• Has the person been properly trained?
• Has a proper and adequate explanation of the job been provided?
• Has the team member been allowed to ask questions?

Often, when an individual is not doing the job well, the honest answer to one or more of these questions is “no.” Before taking irreversible action, you should look at what you can do to correct these deficiencies. As with most problems, the sooner they are recognized and attended to, the better. This is your opportunity to create an ally and establish a better working relationship.

If the situation escalates and a formal meeting is required, start with preparing a written statement of warning (a sample Statement of Warning follows). Meet with the individual to discuss your concerns and create a Team Member Development Plan (sample follows). End the meeting by signing the plan and establishing a time frame to reassess. If the employee refuses to sign the statement, you must have a witness sign it as proof you communicated this information to the individual.

Sample Employee Statement of Warning

Sample Team Member Development Plan

Employee Termination

If there has been no progress within the agreed upon time frame and development plan, termination may be the only solution. In this case you would need to complete a Termination Form for your records (sample follows). It is to your distinct advantage to recognize problems and try to resolve them before resorting to termination.

The following actions should be considered grounds for immediate termination.

• Possessing, being under the influence of, or using alcoholic beverages or drugs while on a jobsite or in the store.
• Brandishing dangerous weapons while on company or customer property.
• Immoral or indecent conduct, soliciting persons for immoral purposes, or the aiding or abetting of the previously mentioned to a customer.
• Theft or misappropriation of customers, employees, or company property.
• Sexual harassment of any kind.
• Fighting or provoking a fight with a customer or any team member
• Falsifying information on an Employee-related document.

Sample Termination Form

Date

Dear Name of Employee,

It is with regret that we inform you that your employment with Name of Company has been terminated effective Date.

You are being terminated due to List Reason.

It is the policy of this company to protect trade secrets, customer lists and other confidential information as vigorously as possible. We remind you that we consider our clients, our business procedures, and our business plans to be proprietary.

We remind you of the non-compete agreement in your original contract.

We request that you return all property that was generated or obtained during your employment with this company, including any documents, handbooks, account ledgers, financial documents, manuals, computers, computer programs, software, keys, bank cards, student information etc.

Sincerely,

Name

Cordovan Art School

Job Safety

Franchisees must document and report all accidents/incidents resulting in injury, illness, or damage to their insurance company immediately. This should be done to protect from potential liability that may arise from situations involving an injured employee while a project is underway. Franchisees are highly encouraged to investigate the methods for processing a claim or contacting an agent at the time the insurance policy is purchased.

Emergency Medical Treatment

If a crewmember sustains a severe injury requiring emergency medical treatment:

• Call 911
• Call for local help and seek assistance until the paramedics arrive
• Use the victim’s emergency contact numbers to reach out to their family

Emergency Phone Numbers

The following phone numbers MUST always be readily available:

• Fire Department
• Ambulance/EMS
• Police
• Medical Clinic/Hospital (and address)

Minor Wounds

Wash the wound using soap and water. Cover the wound using clean dressing.

Major Wounds

Apply pressure directly to the wound using a bandage or cloth. If blood seeps through the applied bandage, add an additional bandage on top of the existing bandage. Keep direct pressure on the wound and elevate above heart, if possible, until medical help arrives.

Broken Bones

Do not move unless it is necessary. If the victim must be moved, “splint” the injured area. Use a board, cardboard, or rolled newspaper as a splint. If the crewmember is unsure how to accomplish this, wait for medical personnel to arrive.

Burns

Rinse the burned area, without scrubbing it, and immerse it in cool water; DO NOT USE ICE WATER. Blot-dry the area and cover it, using sterile gauze or a clean cloth.

Eye Injury

Do not rub your eyes. Use the corner of a soft clean cloth to draw particles out or hold the eyelids open and flush the eyes continuously with water. Seek medical attention for large particles in the eye.

Occupational Safety and Health Administration (OSHA)

Additional information on workplace safety and health hazards can be found via the primary webpage of the Occupational Safety and Health Administration (OSHA).

Link: https://www.osha.gov/

Financial Operations

This section outlines the various administrative responsibilities a franchisee must manage, including financial reporting, royalty payment, and taxes. As a franchisee, it is imperative these reporting practices become an integral part of your routine when managing the business. Franchisees are also required to work with an Accountant (CPA).

Understanding Business Administration

High quality record keeping is responsible business management. We implore you to maintain quality records regarding the operation of your franchise. Utilizing QuickBooks, franchisees will have the ability to monitor and instrumentalize all financial data related to the business.

The following information is general in nature and is intended to assist you in understanding the process of good record keeping:

• The Importance of Quality Record Keeping: An appropriate record-keeping system can determine the survival or failure of your franchise. Complete records will keep you in touch with your business’s operations and obligations and help you see problems before they occur.
• The Need for Good Records: Accounting records furnish substantial information about your volume of business and funds that have been successfully collected as well as current indicators and trends.
• Fulfill Payroll Requirements: Payroll will be a large expense when managing your business. Adequate payroll records should meet the requirements of the:

• Internal Revenue Service.
• State Department of Revenue.
• Local Department of Revenue.
• Workers’ compensation laws.
• Wage and labor laws.
• Social Security requirements.
• Unemployment insurance requirements.

• Control Expenses: Accounting records detail the amounts owed to suppliers and other creditors for you to plan availability of cash to meet all obligations. Such records also provide information regarding expenditures and allow you to establish controls over them. At all times, you must be aware of your individual expense requirements and how they relate to the overall picture.
• Determine Profit Margin: Good accounting records will indicate the franchisee’s level of profit and provide specific information on the factors influencing profitability. In most cases, you can avoid losses if you maintain current records and analyze the information from your records on an ongoing basis.
• Improve Cash Flow: Good accounting records provide detailed reports of cash availability, both on hand and in the bank. Since cash is your most liquid asset, you must carefully account for it.
• Measure Performance: Finally, good business records help you measure your business’s performance by comparing your actual results with the figures in your budget and those of other similar businesses.

Accounting

When operating the business, you will establish a “hybrid” management system in which franchisees monitor the day-to-day revenue reports via usage of the required accounting software while an accountant (CPA) manages the year-end record preparation, summaries and reconciliations for all tax-related obligations. Franchisees are expected to use an accounting service within a reasonable distance of their office.

Franchisees should locate an accounting firm willing to work closely to help provide information necessary for development of a successful operation. There are many types of accounting professionals you may consider:

• Certified Public Accountant (CPA) — A person who has passed the American Institute of CPA’s national examination, which tests an individual’s ability in accounting, auditing, law, and related areas.
• Enrolled Agent (EA) — An individual who has passed a two-day exam prepared by the IRS, covering many areas of federal taxation. This person is generally considered a tax specialist.
• Accredited Accountant — An individual who has passed a rigorous examination prepared by the Accreditation Council of Accountancy and Taxation, a national accounting accreditation board affiliated with the National Society of Public Accountants and the College for Financial Planning. Accredited accountants specialize in small business accounting.

Monthly services provided by an accounting firm will provide you with complete and timely information and will also allow the accountant to develop knowledge of your business and be in a more comfortable position to render professional advice as the business grows.

In addition to bookkeeping, utilizing an accounting service can advise you on financial management for expenditures. They may assist with better understanding your cash flow requirements and budget forecasts, business borrowing opportunities and verifying the legal structure and entity for your business.

Accounting Procedures

DAILY

• Monitor all current bank balances using online banking software.
• Close out all sales reports and upload to QuickBooks.
• Review QuickBooks reports for data sharing with the Corporate Office.
• Identify all processing errors or problems that have occurred.
• Verify all records of monies paid in or out.

WEEKLY

• Evaluate all Accounts Payable to vendors and/or the Franchisor.
• Evaluate all Accounts Receivables from customers.

MONTHLY

• Verify all sales reports and income statements utilizing the bookkeeping features on QuickBooks.
• Review a balance sheet that indicates the balance of business assets and the total current liability of the business.
• Reconcile your bank account each month so that any variations are recognized, and necessary adjustments made.
• Review federal and local tax requirements and make bank deposits.

SUMMARIZING ALL FINANCIAL RESPONSIBILITIES

• Payroll.
• Equipment and Materials.
• Administrative Expenses (attorney fees, CPA fees, etc.).
• Transportation costs.
• Lease-related payments.
• Taxes.

Banking Procedures

Cordovan Arts Franchising, LLC requires all amounts to be paid via an Electronic Funds Transfer (EFT) or Automatic Clearing House (ACH) transfer from a bank account.

Cordovan Arts Franchising, LLC will train and educate franchisees on the payment system utilized to properly satisfy payment obligations. This arrangement will allow a seamless, simplified, and manageable accounting process to be established – both Cordovan Arts Franchising, LLC and the franchisee should ultimately feel comfortable on how payments are processed.

Most transactions within the franchise relationship will take place electronically. However, there may be occasional situations where a transaction at your banking institution will need to take place. In this event, when you fill out and complete a deposit slip upon initiating a banking transaction, indicate the date, time and location the deposit is made, and make a copy of the slip, or a copy of the receipt provided after the transaction.

Cordovan Art School would like detailed and organized methods of delineating each deposit for proper bookkeeping. This will provide a good system of checks and balances. Cordovan Arts Franchising, LLC recommends having access to carbon copies of all checks for record keeping.

Cordovan Art School does not require a specific financial institution for you to do business with, but as a source of information, Wells Fargo features information on their business checking services that you can reference to better understand the typical requirements: www.wellsfargo.com/biz/checking/

Franchise Reporting

Franchisees will be tracking all daily, weekly, monthly, and yearly sales and reports via QuickBooks and Jackrabbit Class – all reports will be evaluated by the Corporate Office to ensure optimum franchise performance. Such financial statements shall be provided according to general accounting principles. Franchisees will be required to work with a CPA to verify compliance with all tax needs and auditing requirements. Should the franchisee have any questions or problems with any franchise reporting responsibilities, the Corporate Office will be happy to assist.

Royalty

After evaluating the potential Return on Investment (ROI), franchisee support costs, and typical royalties of the industry, it has been decided franchisees will pay a royalty of 8% of the prior month’s gross sales. This fee will be due on the date as stated and agreed upon in the Franchise Agreement. Royalty fees will be paid via electronic funds transfer no later than the 5th of the month.

Administrative Checklist

Franchisees may reference this list for ‘action-items’ to complete related to the administrative aspects of the business and franchise.

• Conduct annual strategic and budgeting plan regarding revenue and expenditures

• Review business performance year-over-year
• Compare franchisee performance
• Conduct yearly business review

• Review current expenses
• Review inventory
• Review sales reports provided to the Corporate Office
• Meet with your Field Consultant
• Review licensing and certification needs
• Verify ‘EIN’ number is in good standing
• Verify ordinances with the city and/or state
• File Taxes
• Complete Federal and State Tax returns Annually and/or When Legally Obligated using a CPA

• Verify financial records and bank account balances with QuickBooks figures/reports
• Review and renew all insurance policies
• Analyze all marketing efforts and results
• Update all software
• Submit payroll
• Pay all invoices when they are due
• Calculate royalty payments
• Calculate Marketing Fund Contributions
• Backup all contents and files using Cloud services (Google Drive, Dropbox, etc.)
• Submit all requests for assistance to the Corporate Office
• Communicate with your Field Consultant regularly
• Manage all equipment

• Replace equipment that is damaged or has become unusable
• Maintain regular communication with vendors and the Corporate Office regarding equipment and supply replenishment

Employer Identification Number (EIN)

You must have a federal taxpayer identification number for the Internal Revenue Service (IRS) to process your tax return. There are two types of taxpayer identification numbers: a social security number and an employer identification number.

If you are a sole proprietor, you need an employer identification number (EIN) only if you are required to file an excise or employment tax return. Otherwise, use your social security number. You are a sole proprietor if you are self-employed (work for yourself) and are the only owner of your unincorporated business.

To apply for an EIN, visit the Internal Revenue Service website at www.irs.gov. Numbers are issued immediately. However, it will take approximately two weeks to receive verification in the mail.

How to Get an EIN

You can also retrieve an EIN via www.irs.gov directly from the website at: https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

When to Apply

You should file Form SS-4 early enough so you will have a number by the time you need to file a return or statement or to make a tax deposit. It takes about four weeks for Form SS-4 to be processed.

An EIN is also known as a federal tax identification number and is used to identify a business entity. Employers with employees, business partnerships, and corporations and other types of organizations, must obtain an EIN from the U.S. Internal Revenue Service. The EIN is also known as an Employer Tax ID and Form SS-4:

IRS Required Reports

The three reports required by the IRS concerning payroll taxes are:

• A Quarterly Federal Tax Return (Form 941), due April 30, July 31, October 31, and January 31
• An annual withholding statement for individual employees (W-2 form), due to the employee by January 31 and to the Social Security Administration by the last day of February
• An annual withholding tax summary (W-3 form), due to the Social Security Administration by the last day of February, which reconciles individual employee withholding taxes (W-2 form) with the quarterly returns (Form 941)

Because tax deposit and reporting requirements can be complex, you may find you must devote a lot of time to record keeping and tax reporting. Yet, because you are subject to penalties incurred for late payments of taxes, it is essential that your tax collecting methods are established correctly and that appropriate taxes are submitted accurately and on time. Therefore, Cordovan Arts Franchising, LLC recommends that you call your state department of revenue, the IRS, or the local chamber of commerce or small business association in your state when you have questions.

The Federal Tax Filing Checklist at the end of this section can be used as a reference. It charts the federal requirements for taxes, forms, and due dates that apply to all types of businesses. (Source: IRS Publication 334, Tax Guide for Small Businesses) We strongly recommend that you use the services of an experienced accountant and/or tax professional.

The balance of this discussion presents a general overview of the various tax requirements that apply to small businesses. Be aware that other local, state, or federal taxes that are not mentioned here may apply to your operations.

Taxes

The type of business you operate determines which federal taxes you must pay and how you pay them. There are five general kinds of federal business taxes:

• Income taxes
• Self-employment taxes
• Social security and withheld income taxes for employees
• Unemployment taxes
• Excise taxes

Publication 509, a Tax Calendar, contains a general tax calendar, an employer’s tax calendar, and an excise tax calendar that explains when to file returns, make tax payments, and do other things required by the federal tax law. This publication is updated annually.

Income Taxes

Every business must file an annual income tax return. Which form you should use depends on how your business is organized. For more information on estimated tax, see IRS Publication 505, Tax Withholding and Estimated Tax.

Self-Employment Tax

Self-employment tax is the social security tax for individuals who work for themselves, such as sole proprietors and members of a partnership. The tax is figured and reported on Schedule SE, which is attached to and filed with Form 1040. For more information, obtain Publication 533, Self-Employment Tax.

Social Security, Medicare, and Withheld Income Taxes

If you have employees, you are required to pay or withhold the following:

• Federal income taxes (withheld from employee pay)
• Social security taxes
• Medicare

The total amount of federal income tax must be withheld from your employees’ wages. For social security tax (the FICA, or Federal Insurance Contributions Act tax), you withhold part from your employees’ wages, and you pay a matching amount yourself. An additional amount must be withheld from employees’ wages for Medicare. Social security, Medicare, and withheld income taxes are reported and paid together.

Determine the amount of income tax to withhold from each employee’s paycheck from a tax table furnished by the Internal Revenue Service using the employee’s gross pay for that pay period and the number of exemptions claimed by the employee (from W-4 form). The tax tables to use may be found in Publication 15, Circular E, Employer’s Tax Guide. Your state’s department of revenue can provide you with similar information about state taxes. The amount to withhold for social security is based on a percentage of the gross pay.

Unemployment Taxes

The Federal Unemployment Tax system (FUTA) provides for unemployment compensation for laid-off workers. Federal unemployment tax is reported and paid separately from social security taxes and withheld income taxes. You pay the FUTA tax from your funds. Employees do not pay this tax or have it withheld from their pay.

State Income Taxes

If you are operating as a sole proprietor or as a partner, you will not receive a salary. There will be no income tax withheld from the money you take out of your business. To meet your tax obligations, you must estimate your tax liability and file your income taxes at year-end. Your state’s revenue department will supply you with a tax guide for small businesses and the applicable forms. Your tax return is filed at year-end as an individual return, and your liability is computed from profits earned by the business in that year.

State Unemployment Taxes

Many states require payment of an unemployment tax to be reported quarterly and paid separately from any other state taxes. This tax is paid as a percentage of gross wages, up to a maximum wage level that varies from state to state. The percentage, called an “experience rating,” is determined by the number of claims attributable to your business’ account. It is applied to your employees’ taxable gross wages. In general, the lower the number and amount of the claims, the lower the experience rating will be. This tax is not withheld from the employees’ pay – it is the sole responsibility of the business.

Retail Tax

Generally, a retail sale is the sale of tangible personal property. It is also the sale of services such as installation, repair, cleaning, altering, improving, construction, and decorating. Other services include improving real or personal property, amusement and recreational activities, lawn maintenance, and physical fitness activities.

Different states have different rules when it pertains to sales taxes on services. You should check with a CPA who is familiar with the local tax codes and rules. The sales tax rules will vary depending both on the state and on the county you are doing business in.

For example, South Carolina tax codes and overview is here for reference:

Federal Tax Filing Checklist

*Source: IRS Publication 334, Tax Guide for Small Businesses www.irs.gov/pub/irs-pdf/p334.pdf

Use of Approved Operations Materials

Each Cordovan Art School franchisee will be provided access to the Cordovan Art School Training Website, this platform will provide storage and access to essential documents, manuals, and operational resources needed to run a Cordovan Art School franchise business. Franchisees are expected to regularly utilize these resources and stay up to date with revisions and updates provided through the platform. In addition, franchisees will receive access to additional training materials, including the Manager’s Manual and supporting documents, during Franchisee Training.