What constitutes a 'transfer' by the multi-unit developer of the Hyper Kidz Multi-Unit Development Agreement?

According to Hyper Kidz's 2024 Franchise Disclosure Document, a transfer by a multi-unit developer includes the transfer of any interest in the Multi-Unit Development Agreement, as detailed in Section 11. This definition is important for prospective multi-unit developers to understand, as it clarifies that any change in ownership or control of the development agreement is considered a transfer.

Hyper Kidz maintains the right to approve all transfers, and this consent will not be unreasonably withheld. However, there are specific conditions that must be met for the franchisor to approve a transfer. These conditions include ensuring that the developer is not in default, that at least 25% of all required Hyper Kidz businesses are open or under construction, and that all debts are paid.

Additionally, the buyer must meet Hyper Kidz's current criteria for new multi-unit developers, and the seller must sign a general release and pay a transfer fee. The buyer is also required to personally guarantee all obligations. Hyper Kidz also retains the right of first refusal to acquire the multi-unit developer’s business, meaning they have the option to match any offer made by a potential buyer.