Who must consent in writing to the assignment of a lease to a proposed Hyper Kidz transferee?

According to Hyper Kidz's 2024 Franchise Disclosure Document, the lessor or sublessor of the Hyper Kidz Business must provide written consent to the assignment of the lease to the proposed transferee. This requirement is a condition that must be met before Hyper Kidz will approve the transfer of a franchise agreement.

For a prospective Hyper Kidz franchisee, this means that when selling their franchise, they need to ensure the property lease can be transferred to the buyer. This involves getting the landlord's written approval, which can add complexity to the sale process. The landlord may have specific requirements or concerns about the new tenant, which could potentially delay or even prevent the transfer.

This stipulation is fairly standard in franchising, as the location is often critical to the business's success. Franchisors want to ensure that the new franchisee has secure tenure at the location. Franchisees should maintain a good relationship with their landlord and understand the terms of their lease agreement, particularly the assignment clause, to facilitate a smoother transfer process when the time comes to sell.