What is the duration a final judgment can remain unsatisfied before it triggers termination of the Hyper Kidz franchise agreement?

According to the 2024 Hyper Kidz Franchise Disclosure Document, a final judgment against a franchisee that remains unsatisfied or of record for thirty (30) days or longer can trigger termination of the franchise agreement. However, this is not applicable if a supersedeas bond is filed.

This means that if a court issues a final judgment against a Hyper Kidz franchisee, and the franchisee does not satisfy the judgment (pay the amount owed) within 30 days, Hyper Kidz has grounds to terminate the franchise agreement. The exception to this rule is if the franchisee files a supersedeas bond, which is a type of surety bond that suspends the enforcement of a judgment pending appeal.

This clause protects Hyper Kidz from franchisees who are unable to meet their financial obligations, as an unsatisfied judgment may indicate financial instability. It is fairly standard in franchise agreements to include provisions that allow the franchisor to terminate the agreement if the franchisee becomes insolvent or has significant financial issues.