Who is considered the 'Franchisee' in the Hyper Kidz Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
THIS AGREEMENT is made and entered into this day by and between the franchisor, Boomerang Franchise LLC a Maryland limited liability company whose principal office is at 6120 Syracuse Court, Clarksville, Maryland, 21029 ("we", "us" or "our"), and a(n) , with its principal place of business located at and 's principals , and individual residing at , and , an individual residing at And Principal(s) shall be collectively referred to in this agreement as the "Franchisee". ("Principal(s)").
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the Franchise Agreement specifies who is considered the 'Franchisee.' The agreement is made between Boomerang Franchise LLC, identified as "we," "us," or "our," and the entity or individual(s) who will operate the franchise.
The agreement states that the 'Franchisee' can be a(n) (the document leaves a blank space for specifying the entity type, such as a corporation or LLC), with its principal place of business located at a specified address. Additionally, the 'Franchisee' includes the principals of the business, identified by name and residential address. These principals are collectively referred to as the "Franchisee" within the agreement.
For a prospective Hyper Kidz franchisee, this definition is crucial because it clarifies who is legally bound by the terms of the agreement. If the franchise is owned by a business entity, the principals (e.g., owners, members) are also individually bound by the agreement. This has significant implications for liability and responsibility, as both the business entity and the individuals can be held accountable for compliance with the franchise terms. Therefore, understanding this definition is essential for all parties involved in the franchise agreement.