What is the driving distance used to calculate the Designated Territory for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Your Franchise Agreement will specify the site that will be the Approved Location for your Hyper Kidz Business. Your Franchise Agreement will also specify a Designated Territory, which will be a minimum of 65,000 kids ages 13 & under within a 15-mile radius (Driving Distance), whichever comes first around the Approved Location. Your Designated Territory may be described in terms of street, municipal or other boundaries, and may be depicted on a map that is attached to your Franchise Agreement. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area list as Attachment 3.
During the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, a Hyper Kidz Business in your Designated Territory, except as may be permitted under the Franchise Agreement and those exceptions are described below. Your territorial protection does not depend on your achieving a certain sales volume, market penetration, or other factor, other than compliance with the Franchise Agreement.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Designated Territory is determined by a 15-mile radius driving distance around the Approved Location, or when the area contains a minimum of 65,000 kids ages 13 and under, whichever comes first. The Designated Territory will be specified in the Franchise Agreement and may be described in terms of street, municipal, or other boundaries, and may be depicted on a map attached to the Franchise Agreement. If a location is not yet determined when signing the Franchise Agreement, the franchisee will receive a non-exclusive site search area list.
Hyper Kidz will not establish or operate, nor license any other person to establish or operate, a Hyper Kidz Business in the franchisee's Designated Territory during the term of the Franchise Agreement, with some exceptions as described in the agreement. The territorial protection does not depend on achieving a certain sales volume, market penetration, or other factor, other than compliance with the Franchise Agreement. However, the FDD states that franchisees do not receive an exclusive territory and may face competition from other franchisees, outlets that Hyper Kidz owns, or other channels of distribution or competitive brands that Hyper Kidz controls.
Prospective franchisees should understand that while they receive a Designated Territory, it is not exclusive, and competition is possible. The territory size is determined by either a 15-mile driving radius or reaching 65,000 children under 13, whichever occurs first. This means the actual physical size of the territory can vary significantly depending on population density. Franchisees should carefully evaluate the potential for competition and the demographic makeup of their Designated Territory before investing in a Hyper Kidz franchise.