Does Hyper Kidz's approval of a site constitute a guarantee of its suitability for a Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
hundred eighty (180) days after you sign this Agreement, we will provide you with an additional thirty (30) days to locate a suitable site. If you do not locate a suitable site within this additional thirty (30) day period, we may provide you with an additional extension, in our discretion, or we may terminate this Agreement.
- 4.1.3 You hereby acknowledge and agree that our approval of the Site does not constitute an express or implied assurance, representation or warranty of any kind as to the suitability of the Site for a Hyper Kidz Business or for any other purpose. Our approval of the Site indicates only that we believe the Site complies with acceptable minimum criteria established by us solely for our purposes as of the time of
evaluation. You and we acknowledge that application of criteria that have been effective with respect to other sites may not be predictive of potential for the Hyper Kidz Business and that, subsequent to our approval of the Site, demographic and/or economic factors included in or excluded from our criteria could change, thereby altering the potential of the Site. Such factors are unpredictable and are beyond our control.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the approval of a site by Hyper Kidz does not constitute any assurance, representation, or warranty regarding the site's suitability for a Hyper Kidz Business. Hyper Kidz's approval only indicates that the site meets the minimum criteria established by them at the time of evaluation for their purposes.
The document clarifies that the criteria used for evaluating other sites may not accurately predict the potential of a specific Hyper Kidz Business location. Demographic and economic factors can change after the site's approval, which could affect the site's potential. These factors are unpredictable and beyond Hyper Kidz's control.
Hyper Kidz is not responsible if the site fails to meet a franchisee's expectations regarding revenue, operational performance, or other measures. The document emphasizes that franchisees must conduct their own independent investigation to determine the suitability of the site for a Hyper Kidz Business. This means that the franchisee bears the ultimate responsibility for assessing the location's viability and potential for success.