What is the dependency for exercising each Development Right for a Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION 3: SCHEDULE AND MANNER FOR EXERCISING DEVELOPMENT RIGHTS
- 3.1 Recognizing that time is of the essence, you agree to exercise each of the Development Rights granted hereunder in the manner specified herein, and to satisfy the Minimum Performance Schedule in a timely manner. Your failure to adhere to the Minimum Performance Schedule shall constitute a default under this Agreement as provided in Section 9.1. Under no circumstances, however, may you open a Hyper Kidz Business for business unless and until there is a fully executed Franchise Agreement in place for such Hyper Kidz Business and you have complied with all requirements under the Franchise Agreement for opening such Hyper Kidz Business.
- 3.2 You shall exercise each Development Right granted herein only by executing a Franchise Agreement for each Hyper Kidz Business in accordance with the Minimum Performance Schedule. The Franchise Agreement for the first Development Right exercised hereunder has been executed contemporaneously with this Agreement. The Franchise Agreement for each additional Development Right
exercised hereunder shall be the then-current Hyper Kidz Business Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, exercising each Development Right depends on executing a Franchise Agreement for each Hyper Kidz Business, following the Minimum Performance Schedule. The Franchise Agreement for the first Development Right is executed with the Multi-Unit Development Agreement. For each additional Development Right, the franchisee must use the then-current Hyper Kidz Business Franchise Agreement.
To remain in compliance, the franchisee must submit the fully executed Franchise Agreement with the required copies and pay the remaining initial franchise fee by the deadline outlined in the Minimum Performance Schedule. Failure to meet these requirements results in a default under the Multi-Unit Development Agreement.
Specifically, no Hyper Kidz Business can open until a Franchise Agreement is fully executed, the initial franchise fee is paid, and all Franchise Agreement requirements for opening are met. This ensures that Hyper Kidz maintains brand consistency and operational standards across all locations developed under the agreement.