What does Article 16 of the Hyper Kidz Franchise Agreement discuss?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
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15.7 You Are Not Authorized
You understand and agree that nothing in this Agreement authorizes you or any of the Principals to make any contract, agreement, warranty or representation on our behalf, or to incur any debt or other obligation in our name or the Marks, and that we shall in no event assume liability for, or be deemed liable under this Agreement as a result of, any such action, or for any act or omission of you or any of the Principals or any claim or judgment arising therefrom.
ARTICLE 16: TRANSFER
16.1 Transfer by Us
We shall have the right to assign this Agreement and all of our attendant rights and privileges to any person, firm, corporation or other entity provided that, with respect to any assignment resulting in the subsequent performance by the assignee of our functions: (i) the assignee shall, at the time of such assignment, be financially responsible and economically capable of performing our obligations; and (ii) the assignee shall expressly assume and agree to perform such obligations.
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Article 16 of the franchise agreement pertains to the transfer of the agreement. Specifically, it outlines the conditions under which Hyper Kidz can transfer the agreement to another party, ensuring the assignee is financially responsible and capable of fulfilling the obligations.
Article 16 also addresses the conditions for approval of a transfer by the franchisee. Hyper Kidz states that it will not unreasonably withhold approval of a transfer of interest in the agreement, the franchise, the Hyper Kidz Business, or any of the business's assets, provided all applicable requirements are met.
Additionally, the franchisee must warrant that their ownership structure and initial capitalization are as set forth on Attachment 7 and covenant not to vary from that ownership structure without Hyper Kidz's prior written approval.