Who owns the technology and intellectual property resulting from the Hyper Kidz Brand Development Fund?

According to the 2024 Hyper Kidz Franchise Disclosure Document, any technology and intellectual property that results from the Brand Development Fund is deemed the property of Hyper Kidz. The Brand Development Fund is used for advertising, marketing, and public relations programs to promote Hyper Kidz businesses. Franchisees are required to contribute to this fund, with the amount being 2% of their gross sales.

This means that while franchisees contribute to the fund, they do not own any of the resulting technology or intellectual property. Hyper Kidz retains full ownership. This is a common practice in franchising, where the franchisor maintains control over the brand and associated intellectual property.

For a prospective Hyper Kidz franchisee, this implies that they will not have any proprietary rights to the marketing materials, software, or other innovations developed through the Brand Development Fund. While franchisees benefit from the increased brand recognition and marketing efforts, the long-term value of any resulting technology or intellectual property accrues solely to Hyper Kidz.