Who owns the customer lists of the Franchised Business for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
bilities with respect to, such additional or replacement software or technology. You acknowledge and agree that the Computer
System we designate may give us and our affiliates independent, unlimited access to all information relating to the Franchised Business generated by the Computer System, including, but not limited to, customer, price maintenance and payroll information. At our request, you agree to sign a release with any vendor of your Computer System providing us with unlimited access to your data. You also agree to provide us with access to the WordPress, Class Registration Software, Database Management Software and cameras used in your Extreme Art Studio Business.
2.3.3 You will pay us or our affiliate a Technology Fee (as set forth in Section 3.4) for use of any software or other technology that we (or our affiliates) license or provide to you. Despite the fact that you agree to buy, license, use, and maintain the Computer System according to our standards and specifications, you will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, and upgrading of the Computer System; (2) your connectivity to the Computer System at all times; and (3) any and all consequences if the Computer System is not properly operated, maintained, and upgraded.
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 retains significant access to and control over customer information. While the franchisee operates the computer system, Extreme Art Studio and its affiliates have independent, unlimited access to all information generated by the computer system, including customer information. This access allows Extreme Art Studio to monitor and utilize customer data for its purposes.
Upon termination or expiration of the franchise agreement, the franchisee must cancel or assign all identifiers, including social media websites and email addresses, to Extreme Art Studio. The FDD states that all telephone numbers, websites, internet addresses, and email addresses used in the operation of the franchised business constitute Extreme Art Studio's assets. This transfer ensures that Extreme Art Studio maintains control over the online presence and customer communication channels associated with the business, even after the franchise agreement ends.
This arrangement has important implications for prospective franchisees. While franchisees are responsible for managing the computer system and maintaining customer relationships, Extreme Art Studio retains ultimate control over customer data and online identifiers. This could impact the franchisee's ability to independently market to customers or maintain a customer base if they were to leave the Extreme Art Studio system. Franchisees should carefully consider these factors and discuss with Extreme Art Studio how customer data is used and protected during and after the franchise term.