What rights does Extreme Art Studio have regarding customer information from an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We own the current and future lists of your Extreme Art Studio Business's customers, including all information on students and their parents, such as addresses, telephone numbers, class records, child's date of birth, and other data. At our request, you must send us the customer information we shall request, in the manner and form we designate. You acknowledge and agree that all such customer information comprises part of the Confidential Information, and that we may use such customer information in any way we determine, and irrespective of any transfer, termination, expiration, repurchase, or otherwise.
You may not use our Confidential Information in an unauthorized manner. You must adopt and implement procedures to prevent unauthorized use or disclosure of Confidential Information, including restricting its disclosure to personnel of your Extreme Art Studio Business and certain other people, and using nondisclosure and non-competition agreements with those having access to Confidential Information in a form determined by us (our current form is attached in Exhibit H to this Franchise Disclosure Document). We may regulate the form of agreement that you use, and we will be a third-party beneficiary of that agreement with independent enforcement rights.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 40–41)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio owns the current and future customer lists of an Extreme Art Studio Business. This includes all information on students and their parents, such as addresses, telephone numbers, class records, child's date of birth, and other data. Extreme Art Studio can request this customer information from the franchisee in a designated manner and form.
This customer information is considered part of Extreme Art Studio's Confidential Information. Extreme Art Studio can use this information in any way they determine, regardless of any transfer, termination, expiration, or repurchase of the franchise. The franchisee must adopt procedures to prevent unauthorized use or disclosure of this Confidential Information, including restricting its disclosure and using non-disclosure and non-competition agreements with personnel having access to it.
For a prospective franchisee, this means that Extreme Art Studio has extensive rights over customer data collected by the franchise. The franchisee must provide this data to Extreme Art Studio upon request and cannot use it in any unauthorized manner. This is a common practice in franchising, as it allows the franchisor to maintain brand consistency and manage customer relationships across the entire system. The franchisee should carefully review the non-disclosure and non-competition agreements required by Extreme Art Studio to understand their obligations regarding customer information.