Where can I find the confidentiality and non-competition agreements that employees of Extreme Art Studio must sign?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
expiration, repurchase, or otherwise.
You may not use our Confidential Information in an unauthorized manner. You must adopt and implement procedures to prevent unauthorized use or disclosure of Confidential Information, including restricting its disclosure to personnel of your Extreme Art Studio Business and certain other people, and using nondisclosure and non-competition agreements with those having access to Confidential Information in a form determined by us (our current form is attached in Exhibit H to this Franchise Disclosure Document). We may regulate the form of agreement that you use, and we will be a third-party beneficiary of that agreement with independent enforcement rights.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You must identify one of your owners who is a natural person with at least 51% ownership interest and voting power in you and who will have the authority of a chief executive officer ("Operating Owner"). You (or your Operating Owner) are responsible for the day-to-day management, direction, and control of your Extreme Art Studio Business, subject to the terms and conditions of the Franchise Agreement. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to supervise the day-to-day operations of the Extreme Art Studio Business. The Designated Manager must
successfully complete our Initial Training Program. The Designated Manager need not have an ownership interest in the franchisee entity. If, at any time during the term of the Franchise Agreement, you replace your Operating Owner and/or Designated Manager, that replacement must attend and successfully complete the first available Initial Training Program. You will be charged a training fee for each and every replacement Operating Owner and/or Designated Manager and will be responsible for all costs for airfare, ground transportation, lodging, meals and expenses. You (or your Operating Owner) or your Designated Manager (if any) must continuously exert your (or his or her) best efforts to promote and enhance your Extreme Art Studio Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees are required to have their employees sign confidentiality and non-competition agreements. Item 14 states that Extreme Art Studio's current form for these agreements is attached as Exhibit H to the Franchise Disclosure Document.
Further details and sample agreements are provided in Item 22, which includes exhibits related to contracts. Specifically, Exhibit H-3 contains a sample confidentiality agreement, and Exhibit H-2 contains a sample system protection agreement that includes non-competition clauses. These agreements outline the obligations of individuals working for an Extreme Art Studio franchise regarding confidential information and intellectual property.
These agreements are designed to protect Extreme Art Studio's proprietary information, trade secrets, and overall system. As a franchisee, you must ensure that all personnel with access to confidential information sign these agreements, and Extreme Art Studio retains the right to enforce these agreements directly. Reviewing these exhibits is crucial for understanding the full scope of these obligations and the measures necessary to safeguard Extreme Art Studio's interests.