What is the consequence if a Franchisee or Franchisee's Principal(s) breaches any promises in the Hyper Kidz General Release?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event Franchisee or Franchisee's Principal(s) breaches any of the promises, covenants, or undertakings made herein by any act or omission, Franchisee and Franchisee's Principal(s) shall pay, by way of indemnification, all costs and expenses of any Released Franchisor Party caused by the act or omission, including reasonable attorneys' fees and costs.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee or their principal(s) breach any promises, covenants, or undertakings made in the General Release through any act or omission, they will be required to indemnify the Released Franchisor Party.
This indemnification means the franchisee and their principal(s) must cover all costs and expenses incurred by the Released Franchisor Party as a result of the breach. This includes reasonable attorneys' fees and costs associated with defending against any claims or actions arising from the franchisee's or principal's breach of the General Release.
In essence, the franchisee is financially responsible for any legal or financial repercussions that Hyper Kidz faces due to the franchisee or their principal(s) breaking the promises made in the General Release. This could potentially involve significant expenses, depending on the nature and impact of the breach.