Are clauses (h) and (i) of Section 16.3.2 applicable to Hyper Kidz transfers by gift, bequest, or inheritance?

According to the 2024 Hyper Kidz Franchise Disclosure Document, clauses (h) and (i) of Section 16.3.2 do not apply to transfers by gift, bequest, or inheritance. This means that certain conditions normally required for franchise transfers are waived when the transfer occurs due to these specific circumstances.

Clause (h) of Section 16.3.2 typically requires the transferring party to execute a non-competition agreement. This agreement would prevent the transferring party from engaging in a competitive business within a specified area and time frame. Clause (i) of Section 16.3.2 usually requires the proposed transferee to furnish information and references, as well as attend a personal interview with Hyper Kidz.

For a prospective Hyper Kidz franchisee, this means that if the franchise is transferred through a gift, bequest, or inheritance, the recipient does not have to meet the standard requirements of signing a non-compete agreement or undergoing a personal interview. This can simplify the transfer process in these situations, potentially making it easier for family members or heirs to take over the franchise.