What actions must a Hyper Kidz franchisee take with Internet Companies regarding Electronic Advertising upon termination of the Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
nd the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
2. Internet Advertising and Telephone Accounts
- 2.1 Interest in Websites, Social Media Accounts and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, a franchisee must take specific actions regarding their Electronic Advertising. "Electronic Advertising" refers to domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet websites, and the right to hyperlink to certain websites and listings on various internet search engines related to the Franchised Business or the Marks.
Specifically, the franchisee is required to immediately direct all Internet Companies with which the franchisee has Electronic Advertising to transfer all of the franchisee's interest in such Electronic Advertising to Hyper Kidz. The franchisee must also execute documents and take actions necessary to effectuate this transfer. "Internet Companies" refers to internet service providers, domain name registries, internet search engines, social media companies, and other listing agencies.
However, if Hyper Kidz does not want to accept any or all of the Electronic Advertising, the franchisee must immediately direct the Internet Companies to terminate such Electronic Advertising or take other actions as directed by Hyper Kidz. This ensures that all online presence and advertising related to the Hyper Kidz brand is either transferred to the franchisor or completely removed to avoid confusion after the franchise agreement ends.