After the Hyper Kidz agreement is terminated, what action regarding site selection must the franchisee immediately cease?

According to the 2024 Hyper Kidz Franchise Disclosure Document, following the termination of the agreement, franchisees must immediately cease any attempts to select sites for establishing Hyper Kidz businesses. This obligation is effective immediately upon termination, regardless of the reason for termination or the expiration of the agreement term.

This provision ensures that after the franchise agreement ends, the franchisee cannot continue to act on behalf of Hyper Kidz or use the brand's resources to secure new locations. It protects Hyper Kidz's interests by preventing former franchisees from potentially competing with existing or future franchisees.

For a prospective franchisee, this means understanding that all rights to expand the Hyper Kidz brand cease upon termination. Continuing site selection activities after termination would be a breach of the agreement, potentially leading to legal consequences. Franchisees should be aware of the specific conditions that trigger termination, as outlined elsewhere in the FDD, to avoid unintended breaches and ensure a smooth transition upon the agreement's end.