Can the Proprietary Marks for a Hyper Kidz franchise be changed or improved?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
tandards and procedures as they relate to a particular franchisee or group of franchisees. Nothing in this Agreement shall be construed to require us to grant you a like variance, or to permit you to modify the standards and procedures required for the operation of your Hyper Kidz Business. Any such variances or modifications shall be in our sole and absolute discretion.
11.5 Modification of the System
You understand and agree that the System must not remain static if it is to meet, without limitation, presently unforeseen changes in technology, competitive circumstances, demographics, populations, consumer trends, societal trends and other market place variables, and if it is to best serve the interests of us, you and all other franchisees. Accordingly, you expressly understand and agree that we may from time to time change the components of the System including, but not limited to, altering the products, programs, services, methods, standards, forms, policies and procedures of that System; abandoning the System altogether in favor of another system in connection with a merger, acquisition, other business combination or for other reasons; adding to, deleting from or modifying those products, programs and services which your Hyper Kidz Business is authorized and required to offer; modifying or substituting entirely the building, premises, equipment, signage, trade dress, decor, color schemes and uniform specifications and all other unit construction, design, appearance and operation attributes which you are required to observe hereunder; and changing, improving, modifying or substituting the Marks. You expressly agree to comply with any such modifications, changes, additions, deletions, substitutions and alterations; provided, however, that such changes shall not materially and unreasonably increase your obligations hereunder.
You shall accept, use and effectuate any such changes or modifications to, or substitution of, the System as if they were part of the System at the time that this Agreement was executed.
We shall not be liable to you for any expenses, losses or damages sustained by you as a result of any of the modifications contemplated hereby. You hereby covenant not to commence or join in any litigation or other proceeding against us or any third party complaining of any such modifications or seeking expenses, losses or damages caused thereby. Finally, you expressly waive any claims, demands or damages arising from or related to the foregoing activities including, without limitation, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
11.6 Compliance with Laws and Good Business Practices
You shall secure and maintain in force in your name all required licenses, permits, and certificates relating to the conduct of your business pursuant to this Agreement. You shall operate the Hyper Kidz Business in full compliance with all applicable laws, ordinances and regulations including, without limitation, immigration law, worker's compensation insurance, unemployment insurance, and withholding and payment of all taxes. All advertising by you shall be completely factual, in good taste in our judgment, and shall conform to high standards of ethical advertising. You shall in all dealings with your customers, suppliers, us, and public officials adhere to high standards of honesty, integrity, fair dealing and ethical conduct.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Hyper Kidz has the right to change, improve, modify, or substitute the Marks used in the franchise system. The FDD states that the franchise system must adapt to changes in technology, competition, consumer trends, and other market variables. To this end, Hyper Kidz retains the right to alter various components of the system, including the Marks.
As a Hyper Kidz franchisee, you expressly agree to comply with any modifications, changes, additions, deletions, substitutions, and alterations made to the system. This includes accepting and implementing any changes to the Marks as if they were part of the system at the time the franchise agreement was executed. However, these changes should not materially and unreasonably increase your obligations under the agreement.
Hyper Kidz is not liable for any expenses, losses, or damages you sustain as a result of these modifications. You also waive any claims, demands, or damages arising from these activities, including claims of breach of contract, breach of fiduciary duty, fraud, or breach of the implied covenant of good faith and fair dealing. If Hyper Kidz decides to modify or discontinue the use of any Mark, or to use additional or substitute trademarks or trade dress, you must immediately comply with their directions. Hyper Kidz is not obligated to reimburse you for any expenditures related to modifying or discontinuing the use of a Mark or adopting substitutes, including advertising or promotional materials, or to compensate you for any goodwill related to the discontinued Mark.