What agreement must Designated Managers of an Extreme Art Studio franchise sign?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, any employee, including a Designated Manager, who has access to the franchisor's Confidential Information must sign confidentiality and non-competition agreements. These agreements are included as Exhibit H to the Franchise Disclosure Document.

This requirement ensures that Extreme Art Studio's proprietary information and business practices are protected. Confidential information could include training manuals, marketing strategies, customer lists, and financial data. The non-competition agreement would restrict the Designated Manager from engaging in similar businesses during and for a certain period after their association with the Extreme Art Studio franchise, preventing them from using the franchisor's confidential information to compete against the franchise.

For a prospective Extreme Art Studio franchisee, this means they will need to ensure that any Designated Manager they hire signs these agreements. This is a standard practice in franchising to safeguard the franchisor's and franchisee's interests. The franchisee should carefully review Exhibit H to understand the scope and terms of the confidentiality and non-competition agreements before hiring a Designated Manager.