Can a Hyper Kidz franchisee engage in promotional activities through the internet?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You may sell our products and services to customers who live anywhere but who choose to use your Franchised Business. You may not engage in any promotional activities or sell our products or services, whether directly or indirectly, through or on 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; through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from customers or prospective customers located anywhere. While you may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within your Designated Territory, you will not be deemed to be in violation of the Franchise 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 your Designated Territory. You may not make any sales or deliver any products to customers located outside of your Designated Territory unless the customer is located in an area where there is no Hyper Kidz Business in operation. You may not directly solicit customers outside of your Designated Territory. You may not sell any products to any business or other customer at wholesale.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees face specific restrictions regarding internet-based promotional activities. While franchisees can sell products and services to customers regardless of their location, as long as those customers choose to use the franchisee's physical location, there are limitations on online engagement.
Specifically, a Hyper Kidz franchisee cannot directly or indirectly engage in promotional activities or sales through the internet or similar electronic systems. An exception exists for party bookings made through the official Hyper Kidz website. Franchisees are permitted to use catalogs, mail order, telecopy, and other telephonic or electronic communications, including toll-free numbers, to reach customers.
Hyper Kidz franchisees can place advertisements in printed media, television, and radio, even if these advertisements reach potential customers outside their designated territory due to the media's natural circulation or reach. However, franchisees are prohibited from making sales or delivering products to customers outside their designated territory if a Hyper Kidz location serves that area. Direct solicitation of customers outside the designated territory and wholesale sales are also forbidden. Additionally, Hyper Kidz or its affiliates may use alternative distribution channels like the internet, catalog sales, and telemarketing, without compensating the franchisee for these sales, even if they occur within the franchisee's territory.