At whose request must an Extreme Art Studio franchisee send customer information?
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.
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, franchisees are required to send customer information at the franchisor's request. This includes lists of customers with information on students and their parents, such as addresses, telephone numbers, class records, and children's dates of birth. The franchisee must provide this information in the manner and form designated by Extreme Art Studio.
This requirement means that Extreme Art Studio has the right to collect and utilize customer data from all franchise locations. The FDD states that Extreme Art Studio owns the customer lists and all information contained within them. This data is considered part of the Confidential Information and Extreme Art Studio can use it in any way they determine, regardless of any transfer, termination, expiration, or repurchase of the franchise.
For a prospective franchisee, this highlights the importance of understanding data ownership and usage rights within the franchise agreement. Franchisees should be aware that they are essentially building a customer database that belongs to Extreme Art Studio, and they must comply with the franchisor's requests for this information. This is a fairly standard practice in franchising, as it allows the franchisor to maintain brand consistency, conduct marketing campaigns, and understand overall customer trends across the franchise system.