Does the dispute resolution section of the Hyper Kidz franchise agreement survive termination or non-renewal?

According to the 2024 Hyper Kidz Franchise Disclosure Document, Section 19.1 of the franchise agreement addresses dispute resolution and specifies that it survives termination or non-renewal of the agreement under any circumstances. This means that even after the franchise agreement ends, either through termination by Hyper Kidz or the franchisee, or through non-renewal at the end of its term, the provisions outlined in Section 19.1 regarding dispute resolution will remain in effect.

Specifically, any disputes, claims, or controversies between Hyper Kidz and the franchisee related to the agreement (including its making, performance, or interpretation) that are not resolved through negotiation will be settled by binding arbitration in Howard County, Maryland. This arbitration will occur under Maryland statutes, with an arbitrator having at least five years of experience in franchising or distribution law. The arbitrator can also award specific performance of the agreement.

This survival clause is significant for prospective Hyper Kidz franchisees because it ensures that a defined process for resolving disputes remains in place even after the franchise relationship concludes. This can provide a level of security and clarity, as it avoids uncertainty about how disagreements will be handled post-termination or non-renewal. Franchisees should carefully review Section 19.1 to fully understand the scope and implications of the dispute resolution process, including the location of arbitration, the selection of arbitrators, and the rules governing the proceedings.