Does Extreme Art Studio reserve the right to establish other related franchises in the future?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We have no present plans to establish other related franchises or companyowned businesses offering similar products or services under a name or trademark that is different from Extreme Art, although we reserve the right to do so; and
(8) the right for our affiliate to sell Kidcreate Studio businesses in the Territory included those that offer the Modules that your Extreme Art Business may offer.
(2) the right to establish and operate businesses similar to your Extreme Art Studio Business anywhere under other trade names, trademarks, service marks and commercial symbols different from the Marks;
(3) the right to use the Marks and the System to sell any products or services the same as or similar to those that you will sell through any alternative channels of distribution within or outside of the Territory including retail locations and other channels of distribution such as television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet;
(4) the right to develop or acquire, or be acquired by (whether through acquisition of assets, ownership interests, or otherwise, regardless of the form of transaction), one or more additional concepts or businesses: (i) providing products and services similar to those provided at Extreme Art Studio Businesses; and/or (ii) creating or maintaining franchises, licenses, or similar arrangements with respect to these businesses, wherever these businesses (or the franchise owners or licensees of these businesses) are located or operating (including in the Territory of any of your Extreme Art Studio Businesses);
(5) the right to offer products and services offered by Extreme Art Studio Businesses under the Marks or any other trade names, trademarks, service marks, or commercial symbols that are the same as or different from Extreme Art Studio Businesses, at any special event, conference, exhibition, or temporary venue (including in the Territory of any of your Extreme Businesses);
Source: Item 12 — TERRITORY (FDD pages 37–39)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio retains the right to establish other related franchises or company-owned businesses in the future, even though they have no current plans to do so. Specifically, Extreme Art Studio reserves the right to establish businesses similar to Extreme Art Studio under different trade names, trademarks, service marks, and commercial symbols. This means that while franchisees operate under the Extreme Art Studio brand, the franchisor could introduce competing brands or concepts.
This reservation of rights extends to various activities and channels of distribution. Extreme Art Studio can use the Marks and the System to sell similar products or services through alternative channels, such as retail locations, television, mail order, catalogs, wholesale, or the Internet, both within and outside a franchisee's territory. Additionally, Extreme Art Studio can develop or acquire other businesses that offer similar products and services, and create franchises or licenses for these businesses, regardless of their location, including within an existing franchisee's territory.
Furthermore, Extreme Art Studio reserves the right to offer products and services similar to those of Extreme Art Studio Businesses under the Marks or different trade names at special events, conferences, exhibitions, or temporary venues, even within a franchisee's territory. The FDD also states that Extreme Art Studio's affiliate has the right to sell Kidcreate Studio businesses in the franchisee's territory, including those that offer the Modules that the Extreme Art Studio business may offer.
For a prospective franchisee, this means that while they are granted a territory, Extreme Art Studio retains significant rights to operate or franchise similar businesses through different channels or brands, potentially creating competition. It is important for potential franchisees to understand these rights and how they might impact their business before investing in an Extreme Art Studio franchise.