What criteria must a lease or purchase agreement meet to be approved by Hyper Kidz?

According to Hyper Kidz's 2024 Franchise Disclosure Document, a lease or purchase agreement for an approved site must meet Hyper Kidz's criteria to gain approval. Hyper Kidz may also assist in negotiating the lease or purchase agreement. If Hyper Kidz does not notify the franchisee of approval or disapproval of a proposed lease or purchase agreement within 15 days, it is considered approved. At Hyper Kidz's request, the franchisee must have their landlord sign a Collateral Assignment of Lease.

This means that before a Hyper Kidz franchisee can open their business, the franchisor must explicitly approve the lease or purchase agreement for the chosen site, ensuring it aligns with their standards. The 15-day approval window provides a defined timeframe for the franchisee. The requirement for a Collateral Assignment of Lease gives Hyper Kidz an additional layer of security and control over the location.

It is common practice in franchising for franchisors to have approval rights over site selection and lease agreements. This helps maintain brand consistency and ensures locations meet specific criteria for success. The franchisee should clarify with Hyper Kidz what specific criteria the lease or purchase agreement must meet to ensure a smooth approval process. Understanding these criteria upfront will save time and potential complications during the site selection and lease negotiation phases.