What is the deadline for implementing modifications to the Computer System after receiving notice from Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3.1 You must obtain and use the computer hardware and software that we designate ("Computer System") for each of your Extreme Art Studio Businesses. Without limiting the foregoing, you must use the computer software we designate to manage the daily workflow of the Extreme Art Studio Business; coordinate the customer ordering experience; track inventory, labor, and payroll; and collect information about students and their parents, prices, sales, and other information. We may modify specifications for and components of the Computer System from time to time, and you agree to implement our modifications within 30 days after you receive notice from us, which may include purchasing, leasing, and/or licensing new or modified computer hardware and/or software, and obtaining service and support for the Computer System. You acknowledge and agree that changes to technology are dynamic and not predictable within the term of this Franchise Agreement. In order to provide for the inevitable but unpredictable changes to technological needs and opportunities, you agree that we will have the right to establish, in writing, reasonable new standards for the implementation of technology. You must also pay for any additional or replacement proprietary software or technology that we, our affiliates, or a third-party designee licenses to you, and for other maintenance and support services that we, our affiliates, or a third-party designee provides during this Franchise Agreement's term. Although we cannot estimate the future costs of the Computer System or required service or support, and although these costs might not be fully amortizable over this Franchise Agreement's remaining term, you agree to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions and modifications) and required service or support.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees are required to implement modifications to the designated Computer System within 30 days of receiving notice from Extreme Art Studio. This includes purchasing, leasing, and/or licensing new or modified computer hardware and/or software, as well as obtaining service and support for the Computer System.
This requirement ensures that all Extreme Art Studio locations operate on a uniform and up-to-date technology platform. This allows for efficient management, coordinated customer experiences, and accurate tracking of key business data. The FDD acknowledges that technology changes are dynamic and unpredictable, giving Extreme Art Studio the right to establish new technology standards.
For a prospective franchisee, this means being prepared to invest in ongoing technology upgrades and support. While the exact costs are not predictable, the franchisee is obligated to incur these expenses. This also means the franchisee must stay informed of any notices from Extreme Art Studio regarding required modifications and act promptly to remain compliant with the franchise agreement. Failure to comply within the 30-day timeframe could potentially lead to a breach of the agreement.
Extreme Art Studio also retains the right to access all information generated by the Computer System, including customer, price maintenance, and payroll data. Franchisees must also provide access to WordPress, Class Registration Software, Database Management Software, and cameras used in their Extreme Art Studio Business.