What is the consequence if a Hyper Kidz franchisee makes a material misrepresentation in connection with obtaining a site approval?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.1.4 If you make, or have made, any material misrepresentation to us in connection with obtaining this Agreement, any site approval hereunder, or any Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if a franchisee makes a material misrepresentation to Hyper Kidz in connection with obtaining site approval, Hyper Kidz has the option to terminate the agreement.
Specifically, Hyper Kidz can terminate the agreement upon notice to the franchisee without providing an opportunity to cure the default. This means that if Hyper Kidz discovers a material misrepresentation related to the site approval, they can immediately end the franchise agreement, unless prohibited by applicable state or federal law.
This provision underscores the importance of honesty and accuracy in all dealings with Hyper Kidz, especially during the site approval process. Franchisees should ensure that all information provided is truthful and complete to avoid the risk of immediate termination of their franchise agreement.