Who is required to sign the System Protection Agreement for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Investment Protection Act, chapter 19.100 RCW, and the rules adopted thereunder in accordance with RCW 19.100.220.
IN WITNESS WHEREOF, Releasor has executed this Release as of the date first written above.
, a FRANCHISEE'S OWNERS: Typed or Printed Name Typed or Printed Name Rev. 092122
EXHIBIT H-2
EXTREME ART FRANCHISE
SAMPLE SYSTEM PROTECTION AGREEMENT
This System Protection Agreement ("Agreement") is entered into by the undersigned ("you" or "your") in favor of Extreme Art Studio Franchising, LLC, a Minnesota limited liability company, and its successors and assigns ("us", "we" or "our"), upon the terms and conditions set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the System Protection Agreement is signed by the manager or officer of the franchisee. This agreement is in favor of Extreme Art Studio Franchising, LLC, and its successors and assigns.
The agreement aims to protect Extreme Art Studio's intellectual property and system, acknowledging that the manager or officer may gain knowledge of the system and that protecting this information is vital to the success of both the franchisor and its franchisees. The document states that unfair competition could seriously jeopardize the entire Extreme Art Studio system.
The System Protection Agreement includes clauses related to know-how and intellectual property, restricting the use of know-how to only the Extreme Art Studio business operated by the franchisee. It also requires maintaining confidentiality, preventing unauthorized copies of documents, and ceasing the use of know-how if the individual is no longer a manager or officer. Furthermore, the agreement addresses unfair competition both during and after the relationship with the Extreme Art Studio franchise.