Who has the sole discretion to take action regarding copyright infringements related to Hyper Kidz?
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, Hyper Kidz retains sole discretion to act on copyright infringements. As a franchisee, if you become aware of any potential infringement or challenges to Hyper Kidz's copyrighted works, you are obligated to notify Hyper Kidz immediately.
You, as the franchisee, are prohibited from communicating with any party other than Hyper Kidz and their counsel regarding the infringement, challenge, or claim. This ensures that Hyper Kidz maintains control over the response and strategy.
Hyper Kidz has the exclusive right to manage any settlements, litigation, arbitration, or administrative proceedings related to the alleged infringement, challenge, or claim. This means you cannot independently pursue any legal action or settlement without Hyper Kidz's explicit consent. This is a common practice in franchising, as it protects the brand's intellectual property and ensures consistent handling of legal matters.
This clause is important for prospective franchisees to understand, as it clarifies that Hyper Kidz will handle all legal matters pertaining to copyright infringements, and the franchisee's role is limited to reporting any potential issues.