If a Hyper Kidz franchisee discovers a potential copyright infringement, what is their immediate required action?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You shall immediately notify us of any actual or apparent infringement of or challenge to any of the Copyrighted Works, or claim by any person of any rights in the Copyrighted Works. You shall not communicate with any person other than us and our counsel in connection with any such infringement, challenge or claim. We shall have the sole discretion to take such action as we deem appropriate in connection with the foregoing and the right to control exclusively any settlement, litigation, arbitration or administrative proceeding arising out of any such alleged infringement, challenge or claim or otherwise relating to the Copyrighted Works.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee discovers any potential copyright infringements related to the Copyrighted Works, they must immediately notify Hyper Kidz. The franchisee is prohibited from communicating with anyone other than Hyper Kidz and their counsel regarding the infringement.
Hyper Kidz retains sole discretion to take action they deem appropriate regarding the infringement. This includes the exclusive right to control any settlement, litigation, arbitration, or administrative proceeding related to the alleged infringement.
This clause ensures that Hyper Kidz maintains control over its intellectual property and legal strategy. It prevents franchisees from taking independent action that could compromise the brand's legal position or create inconsistencies in how infringements are handled. The franchisee's role is limited to reporting the potential infringement to Hyper Kidz, and they must then rely on Hyper Kidz to take appropriate action.