Upon termination of the Hyper Kidz Franchise Agreement, what must the franchisee do regarding their Electronic Advertising?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
r use of any Mark;
- (d) Assignment of Numbers and Listings. At Franchisor's request, Franchisee shall execute such forms and documents as Franchisor deems necessary to appoint Franchisor its true and lawful attorney-in-fact, with full power and authority, for the sole purpose of assigning to Franchisor, Franchisee's telephone numbers and listings; and provide Franchisor with passwords and administrator rights for all email, software, social media or other such accounts used or created by Franchisee in order to operate the Franchised Business. Upon the expiration or termination of this Agreement, Franchisor may exercise its authority, pursuant to such documents, to obtain any and all of Franchisee's rights to the telephone numbers of the Franchised Business and all related telephone directory listings and other business listings, and all Internet listings, domain names, Internet advertising, websites, listings with search engines, electronic mail addresses, social media, or any other similar listing or usages related to the Franchised Business;
- (e) immediately cease all use of Copyrighted Works which were furnished to you by us pursuant hereto and return to us or destroy all forms, advertising and promotional materials or other materials containing such Copyrighted Works;
- (f) at our option, assign to us or terminate any Website that identifies you as currently or formerly associated with us or that displays any Mark as well as terminate any domain name of such Website, notwithstanding that you are prohibited from establishing your own Website;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee may be required to relinquish control of their online presence related to the franchise. Hyper Kidz has the authority to obtain the franchisee's rights to telephone numbers, directory listings, internet listings, domain names, internet advertising, websites, search engine listings, email addresses, and social media accounts associated with the Hyper Kidz Business. This means that a franchisee could lose control over their established online presence and customer communication channels.
Additionally, the franchisee must cease using any copyrighted works provided by Hyper Kidz and return or destroy all advertising and promotional materials containing these works. The franchisee may also be required to assign or terminate any website that identifies them as a current or former Hyper Kidz franchisee, including terminating the domain name of such website. This ensures that the franchisee no longer represents themselves as part of the Hyper Kidz system after termination.
To ensure compliance, the franchisee must provide evidence satisfactory to Hyper Kidz within thirty days after the effective date of termination or expiration, demonstrating that they have met these obligations. They must also provide evidence within thirty days after the later of the expiration of Hyper Kidz's option to purchase the business or receipt of notice that Hyper Kidz will not purchase the business. This places a significant responsibility on the franchisee to act promptly and provide the required documentation to avoid any potential legal issues.