Does the Extreme Art Studio Franchise Agreement specify requirements for a 'COMPUTER SYSTEM'?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
2.3 COMPUTER SYSTEM.
- 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.
- 2.3.2 You agree to obtain the Computer System components that we designate, and to ensure that your Computer System, as modified, is functioning properly. You agree that we or our affiliates may condition the license of any additional or replacement proprietary software to you, or your use of additional technology that we or our affiliates develop or maintain, on your signing the form of license agreement or similar document that we or our affiliates prescribe at such time to regulate your use of, and our and your respective rights and responsibilities with respect to, such additional or replacement software or technology. You acknowledge and agree that the Computer
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees are required to obtain and use a designated computer system for each of their Extreme Art Studio businesses. This system includes both hardware and software specified by Extreme Art Studio. The computer system is essential for managing daily operations, coordinating customer orders, tracking inventory, labor, and payroll, and collecting student and parent information, as well as data related to pricing and sales.
The Extreme Art Studio franchise agreement states that the franchisor may modify the specifications and components of the computer system periodically. Franchisees are obligated to implement these modifications within 30 days of receiving notice, which may involve purchasing, leasing, or licensing new or modified hardware and software, and obtaining necessary service and support. Franchisees are also responsible for paying for any additional or replacement proprietary software or technology licensed by Extreme Art Studio, its affiliates, or a third-party designee, along with any related maintenance and support services.
While the future costs of the computer system and required services or support cannot be estimated, franchisees must incur the costs of obtaining the necessary hardware and software, including any additions and modifications, as well as the required service and support. Extreme Art Studio also retains independent, unlimited access to all information generated by the computer system, including customer, price maintenance, and payroll data. Franchisees must sign releases with computer system vendors to provide Extreme Art Studio with this access and must also provide access to WordPress, Class Registration Software, Database Management Software, and cameras used in their Extreme Art Studio Business.