Can Hyper Kidz change the designated computer system in the future, and is the franchisee obligated to comply?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
All software used with the computer system must be kept up to date. In addition, we may require you to update and/or upgrade all or a portion of your computer system during the term of your Franchise Agreement, at your expense. The Franchise Agreement does not limit our ability to require you to update and/or upgrade your computer system or the cost of any update and/or upgrade. Neither we nor any affiliate of ours will provide you with any updates, upgrades or maintenance for your computer system. We reserve the right to change the designated computer system in the future and you must comply with any change we require.
You must obtain and maintain a highspeed internet connection at all times for your computer system. It will be a material default under the Franchise Agreement if you do not maintain the equipment, lines and communication methods in operation and accessible to us at all times throughout the term of the Franchise Agreement. We must have access at all times and in the manner that we specify.
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, Hyper Kidz reserves the right to change the designated computer system in the future, and franchisees must comply with any changes the company requires. The franchisee is responsible for keeping all software used with the computer system up to date. Hyper Kidz may also require franchisees to update or upgrade their computer systems during the term of the Franchise Agreement, and the franchisee will bear the expense of these updates or upgrades. Neither Hyper Kidz nor its affiliates will provide any updates, upgrades, or maintenance for the computer system.
This means that a Hyper Kidz franchisee must be prepared to invest additional capital in their computer systems as required by the franchisor. The FDD does not limit Hyper Kidz's ability to mandate these updates or upgrades, nor does it limit the potential costs. This could create a financial burden for the franchisee if significant or frequent changes are required.
Franchisees must also maintain a high-speed internet connection at all times for their computer systems. Failure to maintain the equipment, lines, and communication methods in operation and accessible to Hyper Kidz constitutes a material default under the Franchise Agreement. Hyper Kidz must have access to the system at all times and in the manner they specify. This level of control and the potential for mandated system changes are important considerations for prospective franchisees.