Who are considered 'Internet Companies' in relation to Hyper Kidz franchise agreements?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
directly or indirectly, through the internet, the world wide web, or any other similar proprietary or common carrier electronic delivery system, except for party bookings made through our Website; or by telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from clients or prospective clients located outside of the Designated Territory. You may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within the Designated Territory, and you will not be deemed to be in violation of this Agreement if those advertisements, because of the natural circulation of the printed media or reach of television and radio, are viewed by prospective customers outside of the Designated Territory. You shall not directly solicit customers outside of your Designated Territory. You shall not sell any products at wholesale.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
Based on the 2024 Hyper Kidz Franchise Disclosure Document, the term 'Internet Companies' is not explicitly defined. However, the FDD does address internet-related activities and restrictions for franchisees.
The Hyper Kidz franchise agreement includes stipulations regarding the use of the internet for business operations. Franchisees are generally restricted from soliciting customers or selling products outside of their designated territory through the internet, with an exception for party bookings made through the Hyper Kidz corporate website. This suggests that Hyper Kidz aims to control online sales and marketing efforts to avoid territorial conflicts between franchisees.
Upon termination or expiration of the franchise agreement, Hyper Kidz retains the right to take control of all internet listings, domain names, websites, and social media accounts associated with the franchise. This provision ensures that franchisees cannot continue to benefit from the Hyper Kidz brand name and online presence after the agreement ends.
Prospective franchisees should seek clarification from Hyper Kidz regarding specific types of online activities that are permitted or prohibited, as well as the criteria used to define 'solicitation' or 'sales' in the context of internet-based marketing. Understanding these details is crucial for avoiding potential breaches of the franchise agreement related to online operations.