What are my obligations to Extreme Art Studio upon termination or expiration of the Franchise Agreement?

15.1 PAYMENT OF AMOUNTS OWED TO US. You agree to pay us within 15 days after this Franchise Agreement expires or is terminated, or on any later date that we determine, the amounts due to us (or our affiliates), the Royalties, Marketing Fees, interest, and all other amounts owed to us (and our affiliates) which then are unpaid. We have the right to set off any amount you or your owners owe us or our affiliates against any amounts we or our affiliates owe you or your owners. You acknowledge and agree that, upon the termination or expiration of this Franchise Agreement (including any Extreme Art Rider(s) then in effect), we shall not become responsible for paying any other third-party amounts you may owe to such third party.

15.2 MARKS.

• 15.2.1 Removal of Signs and Marks.

In the case of expiration, you must deliver to us all Operating Assets and other products and materials containing any Mark or otherwise identifying or relating to an Extreme Art Studio Business on or before the date on which this Franchise Agreement expires.

In the case of a termination, you must deliver to us all Operating Assets and other products and materials containing any Mark or otherwise identifying or relating to an Extreme Art Studio Business within seven days after the date this Franchise Agreement is terminated.

• 15.2.2 Additional De-Identification Requirements.

When this Franchise Agreement expires or is terminated:

• 15.2.2 Additional De-Identification Requirements.

When this Franchise Agreement expires or is terminated:

• (a) you may not directly or indirectly at any time or in any manner (except with other Extreme Art Studio Businesses you own and operate) identify yourself or any business as a current or former Extreme Art Studio Business or as one of our current or former Franchise owners; use any Mark, any colorable imitation of a Mark, or other indicia of an Extreme Art Studio Business in any manner or for any purpose; or use for any purpose any trade name, trade or service mark, or other commercial symbol that indicates or suggests a connection or association with us;

• (b) you agree to take the action required to cancel or assign all fictitious or assumed name or equivalent registrations relating to your use of any Mark;

• (c) if you fail to do so in the required time period, you agree to allow us, without liability to you or third parties for trespass or any other claim, to remove any signs or other materials containing any Marks from any other locations used by the Franchised Business;

• (d) you acknowledge that all telephone numbers, facsimile numbers, social media websites, Internet addresses, and email addresses (collectively "Identifiers") used in the operation of the Franchised Business constitutes our assets, and upon termination or expiration of this Franchise Agreement, you will take such action within five days to cancel or assign to us or our designee as determined by us, all of your right, title and interest in and to such Identifiers, and will notify the telephone company and all listing agencies of the termination or expiration of your right to use any Identifiers and any regular, classified or other telephone directory listing associated with the Identifiers, and to authorize a transfer of the same to, or at our direction.

You agree to take all action required to cancel all assumed name or equivalent registrations related to your use of the Marks.

You acknowledge that we have the sole rights to, and interest in, all Identifiers used by you to promote your Franchised Business and/or associated with the Marks.

15.4 COVENANT NOT TO COMPETE.

• 15.4.1 Upon termination or expiration of this Franchise Agreement, you and your owners agree that, for two years beginning on the effective date of termination or expiration, or the date on which all persons restricted by this Section 15.4 begin to comply with this Section 15.4, whichever is later, neither you nor any of your owners (or their immediate family members) will have any direct or indirect interest as an owner (whether of record, beneficially or otherwise), investor, partner, director, officer, employee, consultant, representative or agent in any Competitive Business located or operating:
  • (a) within a 25-mile radius of each Extreme Art Studio Business that you operate under this Franchise Agreement; and
  • (b) within a 25-mile radius of any other Extreme Art Studio Business that is either open or under development as of the date of termination or expiration of this Franchise Agreement.
• 15.4.2 These restrictions also apply after transfers, as provided in Section 12.3.2(m) above. If any person restricted by this Section 15.4 refuses voluntarily to comply with these obligations, the two-year period for that person will commence with the entry of a court order enforcing this provision. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting these skills. Consequently, our enforcing the covenants made in this Section 15.4 will not deprive you of your personal goodwill or ability to earn a living.
• 15.4.3 If a court of competent jurisdiction determines that the two-year post-term restrictive period set forth above is too long to be enforceable, then the post-term restrictive period above shall be for a period of one year from the termination, expiration or transfer of this Franchise Agreement.

15.5 CONTINUING OBLIGATIONS. All of our and your (and your owners') obligations which expressly or by their nature survive this Franchise Agreement's expiration or termination will continue in full force and effect subsequent to and notwithstanding its expiration or termination, and until they are satisfied in full or by their nature expire.

16. RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.

17.2 WAIVER OF OBLIGATIONS.

• 17.2.1 We and you may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Franchise Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver.

Source: Item 22 — CONTRACTS (FDD page 49)