factual

Which provisions of the Extreme Art Studio Franchise Agreement survive the termination, expiration, or non-renewal of the agreement?

Extreme_Art_Studio Franchise · 2024 FDD

Answer from 2024 FDD Document

imburse us for reasonable costs and expenses (including attorney fees) incurred by us in connection with successfully enforcing, issuing notices of default, or obtaining any remedy arising from your breach of this Franchise Agreement.

15. OUR AND YOUR RIGHTS AND OBLIGATIONS UPON TERMINATION OR EXPIRATION OF THIS 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:
    • (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. You hereby irrevocably appoint us, with full power of substitution, as your true and lawful attorney-infact, which appointment is coupled with an interest, to execute such directions and authorizations as may be necessary or prudent to accomplish the foregoing. You further appoint us to direct the telephone company, postal service, registrar, Internet service provider, listing agency, website operator, or any other third party to transfer such Identifiers to us or our designee. The telephone company, postal service, registrar, Internet Service Provider, listing agency, website operator, or any other third party may accept such direction by us pursuant to this Franchise Agreement as conclusive evidence of our right to the Identifiers and our authority to direct their transfer;

  • (e) if applicable, immediately: (a) cease using or operating any website or other online presences or electronic mediums, including, but not limited to, social networking websites (such as LinkedIn, Instagram, Twitter, Facebook or YouTube) related to the Franchised Business or the Marks; (b) take any action as may be required to disable such websites or social networking website accounts; and (c) cancel all rights in and to any accounts for such websites;
  • (f) you must follow any reasonable procedures established by us to ensure the expiration of this Franchise Agreement creates the least disruption possible to the System, including those procedures set forth in the Franchise Operations Manual; and
  • (g) you agree to give us, within 30 days after the expiration or termination of this Franchise Agreement, evidence satisfactory to us of your compliance with these obligations.
  • 15.3 CONFIDENTIAL INFORMATION. You agree that, when this Franchise Agreement expires or is terminated, you will immediately cease using any of our Confidential Information (including computer software or similar technology, digital passwords and identifications that we have licensed to you or that otherwise are proprietary to us or the System, and customer information) in any business or otherwise, and return to us all copies of the Franchise Operations Manual and any other Confidential Information that we have loaned you.

15.4 COVENANT NOT TO COMPETE.

Source: Item 22 — CONTRACTS (FDD page 49)

What This Means (2024 FDD)

According to the 2024 Extreme Art Studio Franchise Disclosure Document, several obligations continue even after the franchise agreement ends. These include the franchisee's duty to pay all outstanding amounts to Extreme Art Studio, including royalties, marketing fees, and interest, within 15 days of termination or expiration. Extreme Art Studio retains the right to offset any amounts owed by the franchisee against any amounts Extreme Art Studio owes the franchisee.

Additionally, the franchisee must remove all signs and materials bearing Extreme Art Studio's marks upon expiration or within seven days of termination. The franchisee is prohibited from identifying themselves as a current or former Extreme Art Studio franchisee or using any marks associated with the brand. They must also cancel or assign all related assumed name registrations and transfer all identifiers like phone numbers and social media addresses to Extreme Art Studio.

Moreover, a significant covenant not to compete restricts the franchisee and their owners from engaging in any competitive business within a 25-mile radius of any Extreme Art Studio location for two years following termination or expiration. All obligations that expressly or by their nature are meant to survive the agreement's end will remain in effect until fully satisfied or naturally expired. The franchisee is also responsible for reimbursing Extreme Art Studio for costs incurred in enforcing the franchise agreement due to the franchisee's breach.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.