If the Hyper Kidz franchise is terminated, what must the franchisee immediately cease using?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
in any action, hearing or proceeding relating to this Agreement or the termination of this Agreement.
ARTICLE 19: RIGHTS AND OBLIGATIONS UPON TERMINATION OR EXPIRATION
19.1 Payment of Amounts Owed to Us and Our Affiliates
You shall immediately pay to us and our Affiliates upon termination or expiration of this Agreement such Royalty Fees, Brand Development Fees, amounts owed for purchases by you from us or our Affiliates, interest due on any of the foregoing and all other amounts owed to us or our Affiliates which are then unpaid.
19.2 Marks, Copyrights and Trade Dress
- 19.2.1 Upon the termination or expiration of this Agreement, you shall:
- (a) not thereafter, directly or indirectly, at any time or in any manner identify yourself or any business as a current or former Hyper Kidz Business or as a current or former franchisee of ours or otherwise associated with us, or use any Mark, any colorable imitation thereof or any mark substantially identical to or deceptively similar to any Mark in any manner or for any purpose, or utilize for any purpose any trade name, trademark or service mark, domain name, or other commercial symbol or trade dress that suggests or indicates a connection or association with us;
- (b) remove all signs containing any Mark and return to us or destroy forms and materials containing any Mark or otherwise identifying or relating to a Hyper Kidz Business;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately cease certain activities and uses of intellectual property. Specifically, the franchisee cannot identify themselves as a current or former Hyper Kidz franchisee or associate in any way with Hyper Kidz. They are prohibited from using any Hyper Kidz Marks, imitations of those Marks, or anything deceptively similar. This includes trademarks, service marks, domain names, or trade dress that could suggest an association with Hyper Kidz.
In addition to ceasing use of the Marks, the franchisee must also stop using any Confidential Information disclosed to them or acquired during the franchise term. This includes returning all copies of the Operations Manual and any other confidential materials, retaining no copies. The franchisee must also immediately cease all use of Copyrighted Works furnished by Hyper Kidz and return or destroy all advertising and promotional materials containing such Copyrighted Works.
Furthermore, Hyper Kidz has the option to require the franchisee to assign or terminate any website that identifies them as associated with Hyper Kidz or displays any Mark, as well as terminate the domain name of such website. The franchisee is also responsible for modifying the site of the Hyper Kidz Business to clearly distinguish it from its former appearance and from other Hyper Kidz Businesses, preventing any public confusion. These obligations ensure a clean break between the franchisee and the Hyper Kidz brand, protecting the brand's integrity and preventing potential consumer confusion.