What must a Hyper Kidz developer provide before any assignment or transfer is effective?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Any assignment or transfer permitted by this Section 11 shall not be effective until we receive a completely executed copy of all transfer documents, and we consent in writing thereto.
- 11.5.5 Transferee executes or, in appropriate circumstances, causes all necessary parties to execute, our standard form of Multi-Unit Development Agreement, Franchise Agreements for all Hyper Kidz Businesses open or under construction hereunder, and such other then-current ancillary agreements being required by us of new multi-unit developers on the date of transfer.
- 11.5.6 You execute a general release, in a form satisfactory to us, of any and all claims against us, our officers, directors, employees and principal stockholders of any and all claims and causes of action that you may have against us or any subsidiary or affiliated corporations in any way relating to this Agreement or the performance or non-performance thereof by us specifically excluding those representations made by Franchisor in the Franchise Disclosure Document given to the transferee.
- 11.5.7 You pay to us a transfer fee equal to Fifteen Thousand Dollars ($15,000) to cover our reasonable costs in effecting the transfer and in providing initial assistance to transferee.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, before any assignment or transfer of the Development Rights is deemed effective, Hyper Kidz must receive a completely executed copy of all transfer documents and provide written consent to the transfer.
Additionally, the transferee must execute Hyper Kidz's standard Multi-Unit Development Agreement, Franchise Agreements for all Hyper Kidz Businesses that are open or under construction, and any other ancillary agreements required by Hyper Kidz for new multi-unit developers at the time of transfer. The transferring developer must also execute a general release, in a form satisfactory to Hyper Kidz, releasing any and all claims against Hyper Kidz, its officers, directors, employees, and principal stockholders.
Finally, the transferring developer must pay Hyper Kidz a transfer fee of $15,000 to cover the reasonable costs associated with the transfer and providing initial assistance to the new transferee. These conditions ensure that Hyper Kidz maintains control over who is developing their brand and that the new developer is fully committed to the Hyper Kidz system.