Regarding copyright infringements related to Hyper Kidz, is a franchisee permitted to communicate with anyone other than Hyper Kidz and their counsel?
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 Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee is explicitly restricted in who they can communicate with regarding copyright infringements or challenges. Specifically, the franchisee is only permitted to communicate with Hyper Kidz and their legal counsel concerning any actual or apparent infringement or challenge to the Copyrighted Works.
This restriction is significant because it centralizes the management of copyright issues with the franchisor. By limiting communication to only Hyper Kidz and its counsel, the franchisor maintains control over the response to any infringement or claim, ensuring a consistent and legally sound approach. This protects the brand's intellectual property and minimizes the risk of inconsistent or unauthorized statements that could harm the company's position.
The FDD states that Hyper Kidz has the sole discretion to take action and the right to control any settlement, litigation, arbitration, or administrative proceeding related to the Copyrighted Works. This further emphasizes the franchisee's limited role in managing these issues and the importance of adhering to the franchisor's directives. The franchisee's responsibility is primarily to notify Hyper Kidz immediately of any potential infringement, challenge, or claim, and then to rely on the franchisor's expertise to handle the matter.
This type of clause is common in franchise agreements to protect the brand's intellectual property and ensure consistent handling of legal issues. Franchisees should understand that while they are responsible for reporting potential infringements, they must not take independent action or communicate with third parties without the franchisor's explicit consent.