What is Attachment 2 to the Multi-Unit Development Agreement for Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Multi-Unit Development Agreement, we grant you the right to develop and operate the number of Hyper Kidz Businesses in the Development Area that is specified in the minimum performance schedule, which is Attachment 2 to the Multi-Unit Development Agreement. The Development Area is typically described in terms of municipal or county boundaries but may be defined by zip codes or as a specified trade area in a municipality. The actual size of the Development Area will vary depending upon the availability of contiguous markets, our long-range development plans, your financial and operational resources, population and market conditions. Our designation of a particular Development Area is not an assurance or warranty that there are a sufficient number of suitable sites for Hyper Kidz Businesses in the Development Area for you to meet your minimum performance schedule. We will approve sites for future/additional units under a Multi Unit Agreement using our then current site criteria. The responsibility to locate and prepare a sufficient number of suitable sites is solely yours and we have no obligation to approve sites which do not meet our criteria so you can meet the minimum performance schedule.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Attachment 2 to the Multi-Unit Development Agreement is the minimum performance schedule. This schedule specifies the number of Hyper Kidz businesses a franchisee must develop and operate within a designated Development Area. The Development Area itself is defined in the agreement, typically by municipal or county boundaries, but it may also be defined by zip codes or a specified trade area within a municipality. The size of the Development Area depends on factors such as market availability, Hyper Kidz's development plans, the franchisee's resources, and overall market conditions.
The FDD emphasizes that the designation of a Development Area does not guarantee the availability of suitable sites for Hyper Kidz businesses. It is the franchisee's sole responsibility to find and prepare enough locations that meet Hyper Kidz's site criteria to satisfy the minimum performance schedule. Hyper Kidz has no obligation to approve sites that do not meet their standards, even if it impacts the franchisee's ability to meet the schedule.
Meeting the minimum performance schedule outlined in Attachment 2 is critical for maintaining the franchisee's rights under the Multi-Unit Development Agreement. Failure to open and operate the required number of Hyper Kidz businesses by the agreed-upon dates can result in a loss of territorial exclusivity or even termination of the entire agreement. After the last Hyper Kidz Business under the minimum performance schedule has opened, the Multi-Unit Development Agreement will expire.