What does Article 13 of the Hyper Kidz Franchise Agreement address?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 13: ACCOUNTING, REPORTS AND FINANCIAL STATEMENTS
13.1 Record Keeping
You shall establish and maintain, at your own expense, a bookkeeping, accounting, record keeping and records retention system conforming to the requirements prescribed by us from time to time, which includes you obtaining and maintaining a point of sale or computer system ("computer system") that we specify or approve. Each transaction of the Hyper Kidz Business shall be processed on the computer system in the manner we prescribe. We shall have at all times the right to access the computer system and all data processed on the computer system with respect to the Hyper Kidz Business, including, without limitation, your membership and customer database. You shall take such action as may be necessary to provide such access to us, at your expense. You understand and agree that your membership and customer database will, at all times, remain our property and that you shall be an authorized user of such database during the term of this Agreement. In no event shall you retain a copy of such database after the termination or expiration of this Agreement.
13.2 Reports
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Article 13 of the franchise agreement pertains to accounting, reports, and financial statements. This section outlines the franchisee's responsibilities for maintaining accurate and compliant financial records.
Specifically, the franchisee must establish and maintain a bookkeeping, accounting, record-keeping, and record retention system that adheres to Hyper Kidz's requirements. This includes using a point-of-sale or computer system that Hyper Kidz specifies or approves. All transactions must be processed on this system as prescribed by Hyper Kidz.
Hyper Kidz retains the right to access the computer system and all data related to the Hyper Kidz Business, including membership and customer databases. The franchisee is responsible for providing this access at their own expense. The agreement clarifies that the membership and customer database remains the property of Hyper Kidz, with the franchisee being an authorized user during the term of the agreement. Upon termination or expiration of the agreement, the franchisee must not retain a copy of the database.