What exhibits outline the proposed agreements regarding the Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H
CONTRACTS FOR USE WITH THE EXTREME ART FRANCHISE
The following contracts contained in Exhibit H are contracts that Franchisee is required to utilize or execute after signing the Franchise Agreement in the operation of an Extreme Art Studio Business. The following are the forms of contracts that Extreme Art Studio Franchising, LLC uses as of the Issuance Date of this Franchise Disclosure Document. If they are marked "Sample," they are subject to change at any time.
EXHIBIT H-1
EXTREME ART FRANCHISE
SAMPLE GENERAL RELEASE AGREEMENT
WAIVER AND RELEASE OF CLAIMS
EXHIBIT H-2
EXTREME ART FRANCHISE
SAMPLE SYSTEM PROTECTION AGREEMENT
This System Protection Agreement ("Agreement") is entered into by the undersigned ("you" or "your") in favor of Extreme Art Studio Franchising, LLC, a Minnesota limited liability company, and its successors and assigns ("us", "we" or "our"), upon the terms and conditions set forth in this Agreement.
1. Definitions. For purposes of this Agreement, the following terms have the meanings given to them below:
"Competitive Business" means any business that: (i) any program, facility, or enterprise (whether for profit or otherwise) providing art studios (excluding any Extreme Art Studio Businesses operated under a franchise agreement with us); or (ii) any business granting franchises or licenses to others to operate the type of business specified in part (i).
"Copyrights" means all works and materials for which we or our affiliate have secured common law or registered copyright protection and that we allow franchisees to use, sell, or display in connection with the marketing and/or operation of an Extreme Art Studio Business or the solicitation or offer of an Extreme Art franchise, whether now in existence or created in the future.
"Franchisee" means the Extreme Art franchisee for which you are a manager or officer.
"Franchisee Territory" means the territory granted to you pursuant to a franchise agreement with us.
"Intellectual Property" means, collectively or individually, our Marks, Copyrights, Know-how, and System.
"Know-how" means all of our trade secrets and other proprietary information relating to the development, construction, marketing, and/or operation of an Extreme Art Studio Business, including, but not limited to, methods, techniques, specifications, proprietary practices and procedures, policies, marketing strategies, and information comprising the System and the Manual.
"Manual" means our confidential Franchise Operations Manual for the operation of an Extreme Art Studio Business, which may be periodically modified by us.
EXHIBIT H-3
EXTREME ART FRANCHISE
SAMPLE CONFIDENTIALITY AGREEMENT
This Confidentiality Agreement ("Agreement") is entered into by the undersigned ("you") in favor of Extreme Art Studio Franchising, LLC, a Minnesota limited liability company, and its successors and assigns ("us"), upon the terms and conditions set forth in this Agreement.
1. Definitions.For purposes of this Agreement, the following terms have the meanings given to them below:
"Copyrights" means all works and materials for which we or our affiliate(s) have secured common law or registered copyright protection and that we allow Extreme Art franchisees to use, sell, or display in connection with the marketing and/or operation of an Extreme Art Business, whether now in existence or created in the future.
"Franchisee" means the Extreme Art franchisee for which you are an employee, independent contractor, agent, representative, or supplier.
"Intellectual Property" means, collectively or individually, our Marks, Copyrights, Know-how, Manual, and System.
"Extreme Art Studio Business" means either: a) a business that operates art studios in a class, camp, activity and party format that focuses on art activities and other related products and services using our Intellectual Property, or b) a business that operates by offering art lessons in a class, camp, activity and party format that focuses on art activities and other related products and services using our Intellectual Property.
"Know-how" means all of our trade secrets and other proprietary information relating to the development, construction, marketing, and/or operation of an Extreme Art Studio Business, including, but not limited to, methods, techniques, specifications, proprietary practices and procedures, policies, marketing strategies, and information comprising the System and the Manual.
"Manual" means our confidential Franchise Operations Manual for the operation of an Extreme Art Studio Business.
If we grant you a Standard Franchise, you must sign our Multi-Franchise Addendum the form of which is attached to the Franchise Disclosure Document in Exhibit H.
Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, you and we will execute the then-current form of Extreme Art Rider ("Extreme Art Rider"), the current form of which is attached to this Franchise Agreement in Attachment E but which may vary materially and substantially from the form attached to this Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Exhibit H outlines the contracts used within the Extreme Art Studio franchise system. These contracts are required for franchisees to use or execute after signing the Franchise Agreement to operate their Extreme Art Studio Business. The franchisor, Extreme Art Studio Franchising, LLC, uses these contract forms as of the issuance date of the FDD. However, those marked as "Sample" are subject to change at any time.
Exhibit H includes several specific agreements. Exhibit H-1 contains a sample general release agreement, which includes a waiver and release of claims. Exhibit H-2 presents a sample system protection agreement, which defines terms like 'Competitive Business,' 'Copyrights,' 'Franchisee,' 'Intellectual Property,' 'Know-how,' and 'Manual' to protect Extreme Art Studio's interests. Exhibit H-3 provides a sample confidentiality agreement, which also defines terms relevant to protecting the franchisor's confidential information.
Additionally, if a franchisee is granted a Standard Franchise (Multi-2 or Multi-3), they must sign a Multi-Franchise Addendum, the form of which is attached to the Franchise Disclosure Document in Exhibit H. Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, the franchisee and franchisor will execute the then-current form of Extreme Art Rider, the current form of which is attached to this Franchise Agreement in Attachment E.
Prospective franchisees should carefully review all exhibits and attachments to fully understand their rights and obligations under the Extreme Art Studio Franchise Agreement. Because the exhibits marked "Sample" are subject to change, it is important for prospective franchisees to obtain the most current versions of these documents during their due diligence process.