What must a Hyper Kidz developer comply with to be eligible for the right of first refusal for additional Hyper Kidz businesses?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.2 Upon completion of the Minimum Performance Schedule, which is when the final Hyper Kidz Business to be developed hereunder has opened for business, if we determine that it is desirable to operate one or more additional Hyper Kidz Businesses in the Development Area, and provided you have timely complied with the Minimum Performance Schedule and are then in compliance with all terms and conditions of all Franchise Agreements, you shall have a right of first refusal to obtain the Development Rights to such additional Hyper Kidz Businesses upon such reasonable terms and conditions as are then determined by us including, but not limited to, the imposition of a new Development Fee and the payment of the then-current initial franchise fee upon execution of the then-current Franchise Agreement. In such case, we shall advise you in writing of the terms and conditions for the acquisition of the Development Rights for such additional Hyper Kidz Businesses. You must notify us in writing within sixty (60) days of the receipt of such notice whether you wish to acquire the Development Rights to all of such additional Hyper Kidz Businesses. If you do not exercise this right of first refusal, in whole, we may, following the expiration of the sixty (60) day period, grant the Development Rights to such additional Hyper Kidz Businesses to any other person or persons on the same terms and conditions or we may elect to develop and construct any of such additional Hyper Kidz Businesses.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a developer's eligibility for the right of first refusal on additional Hyper Kidz businesses hinges on their adherence to specific terms and conditions. Specifically, this right becomes available if Hyper Kidz determines it wants to operate more businesses in the developer's area after the developer has opened the final business as per the Minimum Performance Schedule.
To qualify for this right of first refusal, the developer must have complied with the Minimum Performance Schedule in a timely manner. Additionally, the developer must be in compliance with all the terms and conditions outlined in all Franchise Agreements they have in place with Hyper Kidz at the time the opportunity arises.
If Hyper Kidz decides to offer additional development rights, they will provide written notice to the developer, including the terms and conditions for acquiring these rights, which may include a new Development Fee and the then-current initial franchise fee. The developer then has sixty days from the receipt of the notice to notify Hyper Kidz in writing whether they wish to acquire the development rights for the additional Hyper Kidz businesses. Failure to exercise this right within the specified timeframe allows Hyper Kidz to offer the rights to others or develop the businesses themselves.