According to the Hyper Kidz agreement, what constitutes an 'Affiliate'?

According to Hyper Kidz's 2024 Franchise Disclosure Document, an 'Affiliate' is defined within the franchise agreement. Specifically, an affiliate includes any person, entity, or company that either directly or indirectly owns or controls a party involved in the agreement. This also extends to those entities that are directly or indirectly owned or controlled by a party to the agreement, or those under common control with a party.

The definition clarifies that 'control' means the power to direct or cause the direction of the management and policies of an entity. This broad definition is important because it identifies any related entities that could potentially impact the franchise operation or be influenced by it.

For a prospective Hyper Kidz franchisee, understanding this definition is crucial. It helps to identify any potential conflicts of interest or related parties that could affect the franchise agreement. It also clarifies the scope of control and ownership that Hyper Kidz considers relevant to the franchise relationship, ensuring transparency and accountability within the network.