What constitutes grounds for termination of the Hyper Kidz Multi-Unit Development Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
To maintain your rights under the Multi-Unit Development Agreement you must have open and in operation the cumulative number of Hyper Kidz Businesses stated on the minimum performance schedule by the dates agreed upon in the minimum performance schedule. Failure to do so will be grounds for either a loss of territorial exclusivity or a termination of the Multi-Unit Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, failure to meet the minimum performance schedule outlined in the Multi-Unit Development Agreement can result in termination of the agreement. Specifically, the agreement specifies a cumulative number of Hyper Kidz businesses that must be open and operating by certain dates.
The minimum performance schedule is detailed in Attachment 2 of the Multi-Unit Development Agreement. This schedule dictates the pace at which the franchisee must establish new Hyper Kidz locations within their designated development area. Falling short of these milestones gives Hyper Kidz the right to terminate the agreement or, at their discretion, remove the franchisee's territorial exclusivity.
This provision underscores the importance of careful planning and execution for multi-unit developers. Prospective franchisees should thoroughly review the minimum performance schedule and assess their ability to meet these requirements before entering into a Multi-Unit Development Agreement with Hyper Kidz. Failing to meet the schedule can have significant consequences, including the loss of development rights and the termination of the agreement.