What is the franchisee's obligation regarding disclosure of materials related to the Extreme Art Studio business?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
All ideas, concepts, techniques, or materials concerning an Extreme Art Studio Business, whether or not protectable intellectual property, and whether created by or for you or your owners or employees, must be promptly disclosed to us and will be deemed to be our sole and exclusive property, part of the System, and works made-for-hire for us. To the extent any item does not qualify as a "work made-for-hire" for us, you assign ownership of that item and all related rights to that item, to us and must take whatever action (including signing assignment or other documents) we request to show our ownership or to help us obtain intellectual property rights in the item.
We own the current and future lists of your Extreme Art Studio Business's customers, including all information on students and their parents, such as addresses, telephone numbers, class records, child's date of birth, and other data. At our request, you must send us the customer information we shall request, in the manner and form we designate. You acknowledge and agree that all such customer information comprises part of the Confidential Information, and that we may use such customer information in any way we determine, and irrespective of any transfer, termination, 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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 40–41)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees have specific obligations regarding the disclosure of materials related to the Extreme Art Studio business. All ideas, concepts, techniques, or materials related to the Extreme Art Studio Business, whether or not they are protectable intellectual property, and regardless of who creates them (the franchisee, their owners, or employees), must be promptly disclosed to Extreme Art Studio. These creations are deemed the sole and exclusive property of Extreme Art Studio, considered part of their system, and classified as works made-for-hire. If any item does not legally qualify as a "work made-for-hire," the franchisee must assign ownership and all related rights to Extreme Art Studio and take any actions, such as signing documents, to demonstrate Extreme Art Studio's ownership or help them secure intellectual property rights.
Extreme Art Studio owns the current and future lists of the franchisee's Extreme Art Studio Business customers, including all information on students and their parents, such as addresses, telephone numbers, class records, child's date of birth, and other data. At Extreme Art Studio's request, the franchisee must send them the customer information requested, in the manner and form they designate. This customer information is considered part of the Confidential Information, which Extreme Art Studio may use in any way they determine, regardless of any transfer, termination, expiration, repurchase, or other event.
The franchisee is prohibited from using Extreme Art Studio's Confidential Information in an unauthorized manner. They must implement procedures to prevent unauthorized use or disclosure of Confidential Information. This includes restricting its disclosure to personnel of the Extreme Art Studio Business and certain other people, and using nondisclosure and non-competition agreements with those who have access to Confidential Information, using a form determined by Extreme Art Studio. Extreme Art Studio may regulate the form of agreement used and will be a third-party beneficiary of that agreement with independent enforcement rights.