What is the choice of forum for resolving disputes related to the Hyper Kidz franchise?

According to the 2024 Hyper Kidz Franchise Disclosure Document, the designated forum for resolving disputes is Howard County, Maryland, although this is subject to state law. This applies both to disputes arising from the standard Franchise Agreement and the Multi-Unit Development Agreement.

This means that if a franchisee has a legal dispute with Hyper Kidz, whether regarding the terms of the franchise agreement or the development agreement, the legal proceedings will likely take place in Howard County, Maryland. This could involve litigation or arbitration, depending on the specific dispute resolution process outlined in the agreements.

For a prospective Hyper Kidz franchisee, this is an important consideration. Howard County, Maryland, might be far from the franchisee's location, potentially increasing the costs associated with resolving disputes, such as travel and local legal representation. Franchisees should factor these potential costs into their overall assessment of the franchise opportunity. It is also important to consult with a legal professional to fully understand the implications of the forum selection clause and how it might affect their rights and obligations under the franchise agreement.