What restrictions are placed on an Extreme Art Studio franchisee's use of Confidential Information?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 2. Background. You are a manager or officer of Franchisee. As a result of this relationship, you may gain knowledge of our System. You understand that protecting the Intellectual Property and our System are vital to our success and that of our franchisees and that you could seriously jeopardize our entire System if you were to unfairly compete with us. In order to avoid such damage, you agree to comply with the terms of this Agreement.
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- Know-How and Intellectual Property. You agree: (i) you will not use the Know-how in any business or capacity other than the Extreme Art business operated by Franchisee; (ii) you will maintain the confidentiality of the Know-how at all times; (iii) you will not make unauthorized copies of documents containing any Know-how; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Know-how; and (v) you will stop using the Know-how immediately if you are no longer a manager or officer of Franchisee's Extreme Art Studio Business. You further agree that you will not use all or part of the Intellectual Property or all or part of the System for any purpose other than the performance of your duties for Franchisee and within the scope of your employment or other engagement with Franchisee. These restrictions on Know-how, Intellectual Property and the System shall not apply to any information which is information publicly known or becomes lawfully known in the public domain other than through a breach of this Agreement or is required or compelled by law to be disclosed, provided that you will give reasonable notice to us to allow us to seek protective or other court orders.
- 4. Unfair Competition During Relationship. You agree not to unfairly compete with us at any time while you are a manager or officer of Franchisee's Extreme Art business by engaging in any Prohibited Activities.
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- Unfair Competition After Relationship. You agree not to unfairly compete with us during the Restricted Period by engaging in any Prohibited Activities;
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, several restrictions are placed on the use of confidential information. As a manager or officer of the Extreme Art Studio franchise, you agree not to use the 'Know-how' in any business other than the Extreme Art business operated by the franchisee. You must maintain the confidentiality of the 'Know-how' at all times and avoid making unauthorized copies of documents containing it. You are also expected to take reasonable steps to prevent unauthorized use or disclosure of the 'Know-how' and to cease using it immediately if you are no longer a manager or officer of the Franchisee's Extreme Art Studio Business.
Additionally, you cannot use the Intellectual Property or the System for any purpose other than performing your duties for the franchisee within the scope of your employment. These restrictions do not apply to information that is publicly known, becomes lawfully known in the public domain (without breaching the agreement), or is required by law to be disclosed, provided that Extreme Art Studio is given reasonable notice to seek protective orders.
Confidential Information includes training and operations materials, System Standards, methods, formats, specifications, systems, procedures, techniques, sales and marketing techniques, market research, promotional materials, strategic plans, supplier information, proprietary computer software, the System Website, operating results and financial performance of other Extreme Art Studio Businesses, customer information, and any other information designated as confidential by Extreme Art Studio. These restrictions are designed to protect Extreme Art Studio's competitive advantage and the integrity of its franchise system.