If I develop a new promotional material for Hyper Kidz, am I required to disclose it to Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You must agree to disclose to us all ideas, concepts, promotional materials, methods, techniques and products relating to the development and operation of Hyper Kidz Businesses conceived or developed by you or your employees during the term of the Franchise Agreement. You must grant to us and agree to obtain from your affiliates, Principals or employees a perpetual, non-exclusive and worldwide right to use these new ideas, concepts, promotional materials, methods, techniques and products in all Hyper Kidz Businesses or other businesses operated by us, our affiliates and franchisees. We have no obligation to make any payment with respect to any idea, concept, method, technique or product. You agree that you will not use, nor will you allow any other person or entity to use, any concept, method, technique or product without obtaining our prior written approval.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–40)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if you or your employees conceive or develop any promotional materials related to the Hyper Kidz business during the term of your Franchise Agreement, you are required to disclose these to Hyper Kidz. This includes all ideas, concepts, methods, techniques, and products related to the development and operation of Hyper Kidz Businesses.
Furthermore, you must grant Hyper Kidz a perpetual, non-exclusive, and worldwide right to use these new materials in all Hyper Kidz Businesses or other businesses operated by them, their affiliates, and franchisees. This means that Hyper Kidz can use your ideas without any obligation to provide payment or compensation. Additionally, you are prohibited from using any concept, method, technique, or product without obtaining Hyper Kidz's prior written approval.
This requirement ensures that Hyper Kidz maintains control over its brand and operational standards, allowing them to implement successful innovations across the franchise system. While franchisees may contribute valuable ideas, they relinquish exclusive rights to those ideas and must obtain approval before using them, which is a fairly standard practice in franchising to maintain uniformity and protect the brand's integrity.