What determines the length of the franchise term in the Hyper Kidz Multi-Unit Development Agreement?

According to Hyper Kidz's 2024 Franchise Disclosure Document, the length of the franchise term for the Multi-Unit Development Agreement is determined by the length of the minimum performance schedule. This means that the agreement's duration is tied to how long it takes a franchisee to meet the development milestones outlined in their agreement with Hyper Kidz.

For a prospective franchisee, this implies that the term is not a fixed number of years but rather depends on their ability to open and operate the agreed-upon number of Hyper Kidz locations within the specified timeframe. Failing to meet the minimum performance schedule could have serious consequences, as it is listed as a non-curable default that could lead to termination of the agreement.

Once all Hyper Kidz businesses have been developed according to the Multi-Unit Development Agreement, the franchisee may have the opportunity to negotiate another agreement with Hyper Kidz in good faith. This provides a potential pathway for continued partnership, but it is not guaranteed and would be subject to the terms negotiated at that time.