Who might license additional or replacement proprietary software to Extreme Art Studio franchisees?
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.
- 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, Extreme Art Studio franchisees may be required to license additional or replacement proprietary software from Extreme Art Studio itself, its affiliates, or a third-party designee. This software is part of the Computer System that franchisees must use to manage their daily operations.
Extreme Art Studio retains the right to modify the specifications and components of the Computer System, and franchisees are obligated to implement these changes within 30 days of notice. This includes purchasing, leasing, or licensing new or modified hardware and software. Franchisees are also responsible for covering the costs associated with obtaining the Computer System and any required service or support, even if these costs are not fully amortizable over the remaining term of the Franchise Agreement.
Extreme Art Studio, its affiliates, or a third-party designee may condition the license of additional or replacement proprietary software on the franchisee signing a license agreement. This agreement would regulate the use of the software and the respective rights and responsibilities of both parties.
As technology changes are dynamic and unpredictable, Extreme Art Studio has the right to establish reasonable new standards for technology implementation. Franchisees are responsible for ensuring their Computer System functions properly and maintaining connectivity. They also grant Extreme Art Studio and its affiliates independent access to all information generated by the Computer System, including customer, price maintenance, and payroll data.