What constitutes the 'System' that Hyper Kidz Businesses feature?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1.4 "Hyper Kidz Business" A business that: (a) offers the Approved Products and Services for sale as well as certain complementary products and services; (b) meets our standards and specifications; (c) operates using the Marks and the System; and (d) is either operated by us or our Affiliates or pursuant to a valid license from us.
We possess and will further develop and acquire "Confidential Information" including, but not limited to, the following categories of information, methods, techniques, procedures, and knowledge developed or to be developed by us, our Affiliates and/or franchisees:
- (a) methods, techniques, specifications, standards, policies, procedures, information, concepts and systems relating to and knowledge of and experience in the development, operation, and franchising of Hyper Kidz Businesses;
- (b) marketing and promotional programs for Hyper Kidz Businesses;
- (c) knowledge of specifications for and knowledge of suppliers of certain materials, equipment and fixtures for Hyper Kidz Businesses;
- (d) the terms of this Agreement;
- (e) the Operations Manual; and
- (f) all data relating to the sales and operations of your Hyper Kidz Business.
Subject to the provisions of this Agreement, we hereby grant to you a "Franchise" to operate the Hyper Kidz Business at the Site and to use the Marks and the System in the operation thereof for a term of ten (10) years commencing on the date of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a Hyper Kidz Business operates using the 'System'. The FDD defines a 'Hyper Kidz Business' as one that offers approved products and services, meets Hyper Kidz's standards and specifications, operates using the Marks and the System, and is operated either by Hyper Kidz or its affiliates or via a valid license.
The 'System' includes methods, techniques, specifications, standards, policies, procedures, information, concepts, and systems related to the development, operation, and franchising of Hyper Kidz Businesses. It also encompasses marketing and promotional programs, knowledge of specifications for materials, equipment, and fixtures, the terms of the Franchise Agreement, the Operations Manual, and all data related to the sales and operations of the franchisee's Hyper Kidz Business.
Hyper Kidz retains all rights to the Hyper Kidz Businesses, the Marks, and the sale of approved products and services worldwide. This includes the right to produce, offer, and sell products through various channels of distribution under different marks, and to operate Hyper Kidz Outlets outside the franchisee's designated territory. The franchise granted to a franchisee is specifically for operating a Hyper Kidz Business at the designated Site and using the Marks and the System for a term of ten years, as outlined in the Franchise Agreement.