What is Hyper Kidz's definition of 'Electronic Advertising' in the context of the franchise agreement?
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, franchisees are restricted in their electronic advertising activities. Specifically, franchisees cannot directly or indirectly advertise through the internet, the world wide web, or any similar electronic delivery system to clients outside of their designated territory. An exception is made for party bookings made through the Hyper Kidz website.
This restriction also applies to telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from clients or prospective clients located outside of the franchisee's designated territory. However, franchisees are allowed to place advertisements in printed media, television, and radio, even if those advertisements are incidentally viewed by prospective customers outside their designated territory due to the natural circulation or reach of those media.
The franchisee is explicitly prohibited from directly soliciting customers outside of their designated territory and from selling any products at wholesale. Hyper Kidz retains control over internet and electronic commerce activities pertaining to the System, including establishing and maintaining websites. Franchisees are generally prohibited from maintaining their own websites or advertising on the internet in connection with their Hyper Kidz Business, and they cannot use social media for promotion without prior written consent.