What rights do I grant to Hyper Kidz regarding ideas I develop related to the Hyper Kidz business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You must agree to disclose to us all ideas, concepts, promotional materials, methods, techniques and products relating to the development and operation of Hyper Kidz Businesses conceived or developed by you or your employees during the term of the Franchise Agreement. You must grant to us and agree to obtain from your affiliates, Principals or employees a perpetual, non-exclusive and worldwide right to use these new ideas, concepts, promotional materials, methods, techniques and products in all Hyper Kidz Businesses or other businesses operated by us, our affiliates and franchisees. We have no obligation to make any payment with respect to any idea, concept, method, technique or product. You agree that you will not use, nor will you allow any other person or entity to use, any concept, method, technique or product without obtaining our prior written approval.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–40)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to disclose any ideas, concepts, promotional materials, methods, techniques, and products related to the development and operation of Hyper Kidz businesses that they or their employees conceive or develop during the term of the Franchise Agreement.
The franchisee must grant Hyper Kidz a perpetual, non-exclusive, and worldwide right to use these new ideas, concepts, promotional materials, methods, techniques, and products in all Hyper Kidz businesses or other businesses operated by Hyper Kidz, its affiliates, and franchisees. This means that Hyper Kidz can use the franchisee's ideas without restriction in any of their businesses globally, even after the franchise agreement ends.
Importantly, Hyper Kidz has no obligation to provide any payment or compensation for the use of any idea, concept, method, technique, or product disclosed by the franchisee. Furthermore, the franchisee is prohibited from using, or allowing others to use, any such concept, method, technique, or product without obtaining Hyper Kidz's prior written approval. This clause ensures that Hyper Kidz maintains control over the implementation of new ideas within the franchise system and is not obligated to compensate franchisees for their contributions.