What is the exception to the violation of law leading to termination for a Hyper Kidz franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.1.6 If you suffer a violation of any law, ordinance, rule or regulation of a governmental agency in connection with the operation of the business, and permit the same to go uncorrected after notification thereof, unless there is a bona fide dispute as to the violation or legality of such law, ordinance, rule or regulation, and you promptly resort to courts or forums of appropriate jurisdiction to contest such violation or legality.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee may face termination for violating any law, ordinance, rule, or regulation related to their business operation. However, Hyper Kidz provides an exception if the franchisee is contesting the violation.
Specifically, Hyper Kidz will not terminate the agreement if there is a bona fide dispute regarding the violation or the legality of the law, ordinance, rule, or regulation in question. To qualify for this exception, the franchisee must promptly take the matter to the appropriate courts or legal forums to challenge the violation or legality.
This clause protects Hyper Kidz franchisees from immediate termination if they are actively and legally disputing a potential violation. It allows them time to resolve the issue through the legal system without automatically losing their franchise. However, it is crucial for franchisees to act quickly and demonstrate a genuine effort to contest the alleged violation to avoid termination.