What actions is a Hyper Kidz franchisee prohibited from taking regarding the lease without Boomerang Franchise LLC's written consent?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
4.2.1 Upon our approval of a proposed site, you will attempt to obtain lawful possession of the approved Site through your direct purchase, lease or sublease. The lease or sublease for the Site shall be in a form satisfactory to us and: (a) provide for concurrent, written notice to us of your default under said lease or sublease; (b) provide for our right, in our sole discretion, to cure your default under said lease or sublease; (c) provide for your right to assign your interest under said lease or sublease to us without the lessor's or sublessor's consent; (d) authorize and require the lessor or sublessor to disclose to us upon our request sales and other information furnished to the lessor or sublessor by you; (e) provide that we shall have the right, in our sole discretion, upon termination of this Agreement or expiration of this Agreement, without the grant of a successor franchise, to assume said lease or sublease; (f) provide for the lessor's or sublessor's consent to your display of the Marks in accordance with our specifications, subject only to applicable law; (g) provide that it may not be materially modified without our prior written consent and that we will receive copies of such modifications when proposed and when executed; and (h) include an executed copy of the Collateral Assignment of Lease, which is attached hereto as Attachment 6, or a substantially similar form.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee is prohibited from materially modifying the lease or sublease for their approved site without prior written consent from Boomerang Franchise LLC. Hyper Kidz also requires that they receive copies of such modifications both when they are proposed and after they are executed.
This provision ensures that Hyper Kidz maintains control over the location of its franchises and that the lease terms are in accordance with their standards. By requiring consent for material modifications, Hyper Kidz can prevent franchisees from making changes to the lease that could negatively impact the franchise or the brand.
For a prospective Hyper Kidz franchisee, this means they must obtain written consent from Boomerang Franchise LLC before making any significant changes to their lease agreement. Failure to do so could result in a breach of the franchise agreement. It is important for franchisees to carefully review their lease agreement and understand what constitutes a material modification. Franchisees should also maintain open communication with Hyper Kidz regarding any proposed changes to the lease.