What criteria does Hyper Kidz use to approve sites for a Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
the Franchise Agreement. (Franchise Agreement, Section 6.5.)
Site Selection
You must select the site for your Hyper Kidz Business, and you must obtain our written acceptance of any proposed site in accordance with our procedures. Within 180 days after you sign the Franchise Agreement, you must submit to us the information and materials we may reasonably require for your proposed site, including demographic, commercial and other information, and photographs. We will consider the site based on demographic characteristics of the proposed site, traffic patterns, parking, the predominant character of the neighborhood, competition from other businesses providing similar services within the area (including other Hyper Kidz Businesses), the number of households, income levels, population, the purchase price or lease terms for the proposed site and other commercial characteristics, the size of the premises, appearance, and other physical characteristics of the proposed site. (Franchise Agreement – 4.1)
We will have 30 days after we receive this information and materials from you to approve or disapprove the proposed site as the location for your Hyper Kidz Business. If we do not provide our specific approval of a proposed site, the site is deemed not approved. Our approval only means that the site meets our requirements for a Hyper Kidz Business. We also reserve the right to approve your lease. We will not lease a site and then sublease it to you. (Franchise Agreement 4.1.2)
If you do not locate a suitable site within 180 days after you sign the Franchise Agreement, we will provide you with an additional 30 days to locate a suitable site. If you do not locate a suitable site within this additional 30-day period, we may provide you with an additional extension, in our discretion, or we may terminate the Franchise Agreement. (Franchise Agreement 4.1.2)
Opening
We estimate that the time from when the Franchise Agreement is signed to the opening of the Hyper Kidz Business will be approximately 9 to 12 months.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are responsible for selecting their business location, but Hyper Kidz must provide written acceptance of the proposed site. Within 180 days of signing the Franchise Agreement, the franchisee must submit all required information and materials, including demographic, commercial data, and photographs of the site. Hyper Kidz then has 30 days to approve or disapprove the site. Failure to secure an approved site within the initial 180-day period grants an additional 30 days; failure to do so within this extension may lead to further extensions at Hyper Kidz's discretion or termination of the Franchise Agreement.
Hyper Kidz considers several factors when evaluating a potential site. These include the demographic characteristics of the area, traffic patterns, parking availability, the nature of the neighborhood, and competition from similar businesses, including other Hyper Kidz locations. They also assess the number of households, income levels, and overall population in the area. The purchase price or lease terms, the size of the premises, its appearance, and other physical characteristics are also important considerations.
For franchisees considering a Multi-Unit Development Agreement, Hyper Kidz reviews site survey information to ensure it conforms to their standards and criteria for potential sites. The franchisor uses its current site criteria at the time of review to approve locations for future units under such agreements. This process ensures that all locations align with the brand's standards and have the potential for success, maintaining consistency across the franchise system.