factual

Where can a Hyper Kidz franchisee sell products and services?

Hyper_Kidz Franchise · 2024 FDD

Answer 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 the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee can sell products and services to customers who choose to use their franchised business, regardless of where those customers live. However, there are specific restrictions on how and where a franchisee can engage in promotional activities and sales.

A Hyper Kidz franchisee is restricted from directly or indirectly selling products or services through the internet, the world wide web, or any similar electronic delivery system, with the exception of party bookings made through the Hyper Kidz website. They are also limited in using catalogs, mail order devices, telecopy, or other telephonic or electronic communications directed to customers located anywhere. While franchisees can place advertisements in printed media, television, and radio targeted within their Designated Territory, they must not actively solicit customers outside of it.

Furthermore, a Hyper Kidz franchisee cannot make sales or deliver products to customers outside their Designated Territory if a Hyper Kidz Business is already in operation in that area. Wholesale sales to businesses or other customers are also prohibited. These restrictions are designed to protect the territorial interests of other franchisees and the franchisor, ensuring fair competition and controlled brand distribution.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.