What must Boomerang Franchise LLC do before I open my Hyper Kidz Business under the Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreements (Multi-Unit Development Agreement – Section 1.1).
Franchise Agreement: 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)
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- Furnish our design specifications, which include our requirements for design, decoration, layout, equipment, furniture, fixtures, color scheme, signs and other operating materials needed for the Hyper Kidz Business to open. (Franchise Agreement – Section 4.3.)
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- Review your construction plans. Our review of your construction plans is not meant to assess compliance with any applicable laws, ordinances, or building codes. Our review of your proposed plans is only to verify that your Hyper Kidz Business will be built out according to our specifications for design and appearance. (Franchise Agreement – Section 4.3.)
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- Loan you for your sole use one copy of the Manual for the term of the Franchise Agreement. We may provide the Manual electronically. (Franchise Agreement – Section 5.5.)
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- Train up to three people in the operation of your Hyper Kidz Business. We describe this training later in this Item. We will also provide one of our representatives to assist with opening your Hyper
Kidz Business for up to 14 days. If you request additional days of opening assistance, you must pay our then-current per diem fee for each additional day of assistance and you must reimburse our representative's additional expenses, including travel, lodging and meals. If you are opening your second or later Hyper Kidz Business, we have the right to reduce the amount of opening assistance provided or to not provide opening assistance. (Franchise Agreement – Section 5.1.)
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- Consult with you to develop the grand opening advertising campaign you must conduct for the Hyper Kidz Business. (Franchise Agreement – Section 4.8.)
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Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Boomerang Franchise LLC has several obligations to fulfill before a franchisee can open their Hyper Kidz Business. These obligations include approving the proposed site if it meets Hyper Kidz's requirements and designating the boundaries of the franchisee's designated territory. Boomerang Franchise LLC must also approve the lease or purchase agreement for the site, provided it meets their criteria, and may assist in negotiating the agreement. If Boomerang Franchise LLC does not respond to a proposed lease or purchase agreement within 15 days, it is considered approved.
Additionally, Hyper Kidz is responsible for providing design specifications that detail the requirements for the design, decoration, layout, equipment, furniture, fixtures, color scheme, signs, and other operating materials necessary to open the Hyper Kidz Business. They will also review the franchisee's construction plans to ensure they align with Hyper Kidz's design and appearance specifications, though this review does not ensure compliance with local laws or building codes. Hyper Kidz will loan the franchisee one copy of the Manual for the term of the Franchise Agreement, potentially in electronic format.
Furthermore, Hyper Kidz will train up to three people in the operation of the Hyper Kidz Business and provide a representative to assist with the opening for up to 14 days. The franchisor will also consult with the franchisee to develop the grand opening advertising campaign. The franchisee cannot open their Hyper Kidz Business until Boomerang Franchise LLC has given its approval to do so.