What is the dependency between the Franchise Agreement and the Internet Advertising, Social Media, Software and Telephone Account Agreement for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Hyperkidz business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, software accounts and use telephone listings linked to the Hyperkidz brand.
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and 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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Internet Advertising, Social Media, Software and Telephone Account Agreement is dependent on the Franchise Agreement. Hyper Kidz would not enter into the Franchise Agreement without the franchisee agreeing to comply with all the terms and provisions of the Internet Advertising, Social Media, Software and Telephone Account Agreement. This highlights the importance Hyper Kidz places on controlling its brand image and marketing strategies.
This dependency means that the franchisee's rights to conduct internet-based advertising, maintain social media accounts, and use telephone listings linked to the Hyper Kidz brand are all contingent upon adhering to the terms of both agreements. The franchisor retains significant control over the franchisee's online presence and communication channels. This control extends to the use of social media, where franchisees are not permitted to promote their Hyper Kidz Business or use any of the Marks on social networking websites without prior written consent from Hyper Kidz.
Upon termination of the Franchise Agreement, Hyper Kidz has the authority to obtain all of the franchisee's rights to telephone numbers, listings, internet listings, domain names, websites, email addresses, and social media accounts related to the franchised business. This ensures that upon the end of the franchise term, the franchisee cannot continue to operate a similar business using the Hyper Kidz brand identity or marketing materials. The franchisee must also direct all internet service providers and telephone companies to transfer all interests in electronic advertising and telephone listings to Hyper Kidz.