Will Hyper Kidz assist in negotiating the lease or purchase agreement for my approved Hyper Kidz site?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your Hyper Kidz Business, we will:
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- Approve of the site you propose, if it meets our requirements. Once the location for your Franchised Business has been approved by us, we will designate the boundaries of your Designated Territory. (Franchise Agreement – Section 4.1.)
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- Approve a lease or purchase agreement for the approved site, if the lease or purchase agreement meets our criteria. We may also assist you in negotiating the lease or purchase agreement. If we do not notify you of our approval or disapproval a proposed lease or purchase agreement within 15 days, it shall be deemed approved. At our request, you must have your landlord sign a Collateral Assignment of Lease. (Franchise Agreement – Section 4.2. and Attachment 6)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz may assist franchisees in negotiating the lease or purchase agreement for their approved site. The FDD states that Hyper Kidz will approve a lease or purchase agreement for the approved site if the agreement meets their criteria. If Hyper Kidz does not notify the franchisee of their approval or disapproval of a proposed lease or purchase agreement within 15 days, it shall be deemed approved.
Site selection is a critical step for any new franchise location. Hyper Kidz requires franchisees to select a site for their Hyper Kidz Business and obtain written acceptance of the site in accordance with their procedures. Franchisees must submit the required information and materials for their proposed site within 180 days after signing the Franchise Agreement. Hyper Kidz will then consider the site based on various factors, including demographic characteristics, traffic patterns, parking, competition, the number of households, income levels, population, the purchase price or lease terms, the size of the premises, appearance, and other physical characteristics.
Hyper Kidz has 30 days after receiving the information and materials to approve or disapprove the proposed site. If Hyper Kidz does not provide specific approval, the site is deemed not approved. Hyper Kidz also reserves the right to approve the lease. However, Hyper Kidz will not lease a site and then sublease it to the franchisee. If a franchisee does not locate a suitable site within 180 days after signing the Franchise Agreement, Hyper Kidz will provide an additional 30 days. After this period, Hyper Kidz may provide an additional extension or terminate the Franchise Agreement.