What rights does Extreme Art Studio have to establish new technology standards for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3.1 You must obtain and use the computer hardware and software that we designate ("Computer System") for each of your Extreme Art Studio Businesses. Without limiting the foregoing, you must use the computer software we designate to manage the daily workflow of the Extreme Art Studio Business; coordinate the customer ordering experience; track inventory, labor, and payroll; and collect information about students and their parents, prices, sales, and other information. We may modify specifications for and components of the Computer System from time to time, and you agree to implement our modifications within 30 days after you receive notice from us, which may include purchasing, leasing, and/or licensing new or modified computer hardware and/or software, and obtaining service and support for the Computer System. You acknowledge and agree that changes to technology are dynamic and not predictable within the term of this Franchise Agreement. In order to provide for the inevitable but unpredictable changes to technological needs and opportunities, you agree that we will have the right to establish, in writing, reasonable new standards for the implementation of technology. You must also pay for any additional or replacement proprietary software or technology that we, our affiliates, or a third-party designee licenses to you, and for other maintenance and support services that we, our affiliates, or a third-party designee provides during this Franchise Agreement's term. Although we cannot estimate the future costs of the Computer System or required service or support, and although these costs might not be fully amortizable over this Franchise Agreement's remaining term, you agree to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions and modifications) and required service or support.
- 2.3.2 You agree to obtain the Computer System components that we designate, and to ensure that your Computer System, as modified, is functioning properly. You agree that we or our affiliates may condition the license of any additional or replacement proprietary software to you, or your use of additional technology that we or our affiliates develop or maintain, on your signing the form of license agreement or similar document that we or our affiliates prescribe at such time to regulate your use of, and our and your respective rights and responsibilities with respect to, such additional or replacement software or technology. You acknowledge and agree that the Computer
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 the right to establish new technology standards for its franchises. The franchisee is required to use the computer hardware and software that Extreme Art Studio designates for each Extreme Art Studio Business. This Computer System is used to manage daily workflow, coordinate customer ordering, track inventory, labor, and payroll, and collect information. Extreme Art Studio may modify the specifications and components of the Computer System, and the franchisee must implement these modifications within 30 days of notice. This may include purchasing, leasing, or licensing new hardware and software.
Extreme Art Studio has the right to establish reasonable new standards for technology implementation in writing due to the dynamic and unpredictable nature of technological changes. The franchisee is also responsible for paying for any additional or replacement proprietary software or technology licensed by Extreme Art Studio, its affiliates, or a third-party designee, as well as for maintenance and support services. The FDD acknowledges that the future costs of the Computer System and related services are uncertain and may not be fully amortizable over the Franchise Agreement's term, but the franchisee is still obligated to incur these costs.
The franchisee must ensure that the Computer System, as modified, functions properly and agrees that Extreme Art Studio or its affiliates may require the franchisee to sign a license agreement for any additional or replacement software or technology. This agreement will regulate the use of the software or technology and define the rights and responsibilities of both parties. The franchisee acknowledges and agrees to these conditions, understanding that maintaining System Standards, including technology, is essential for preserving the goodwill of the Extreme Art Studio brand.