What evidence must a Hyper Kidz franchisee provide to the franchisor after termination or expiration of the agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.2.2 You shall furnish to us (a) within thirty (30) days after the effective date of termination or expiration, evidence satisfactory to us of your compliance with Subparagraphs (a) and (c) of the foregoing obligations, and (b) within thirty (30) days after the later of expiration of our option to purchase the Hyper Kidz Business as provided in Section 19.6 or receipt of notice that we elect not to purchase the Hyper Kidz Business pursuant to Section 19.6, evidence satisfactory to us of your compliance with the foregoing obligations.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee must furnish evidence of compliance with certain obligations after the termination or expiration of the franchise agreement. Specifically, the franchisee must provide evidence that they have ceased identifying themselves as a current or former Hyper Kidz franchisee and that they have removed all signs and materials containing Hyper Kidz's marks.
Within 30 days after the effective date of termination or expiration, the franchisee must provide evidence satisfactory to Hyper Kidz that they have complied with these obligations. Additionally, within 30 days after the later of either the expiration of Hyper Kidz's option to purchase the business or receipt of notice that Hyper Kidz will not purchase the business, the franchisee must provide evidence of compliance with all obligations related to ceasing use of Hyper Kidz's marks and trade dress.
This requirement ensures that the franchisee takes the necessary steps to disassociate themselves from the Hyper Kidz brand and prevent any potential confusion among customers. The franchisee is responsible for demonstrating their compliance, which may involve providing photographs, written statements, or other documentation as required by Hyper Kidz. Failure to provide satisfactory evidence could result in further action by Hyper Kidz to enforce these post-termination obligations.