What exhibit in the Hyper Kidz FDD contains the form for the Multi-Unit Development Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
In certain circumstances, we will offer to you the right to sign a multi-unit development agreement (the "Multi-Unit Development Agreement") in the form attached as Exhibit C to this Disclosure Document to open multiple Hyper Kidz Businesses to be located within a specifically described geographic area (the "Development Area"). We will determine the Development Area before you sign the Multi-Unit Development Agreement and a description of the Development Area will be included in the Multi-Unit Development Agreement. Under the Multi-Unit Development Agreement, you must establish at least three Hyper Kidz Businesses within the Development Area according to a minimum performance schedule, and sign a separate Franchise Agreement for each Hyper Kidz Business established under the Multi-Unit Development Agreement. The Franchise Agreement for the first Hyper Kidz Business opened under the Multi-Unit Development Agreement will be in the form attached as Exhibit B to this Disclosure Document and will be signed at the same time you sign the Multi-Unit Development Agreement. For each additional Hyper Kidz Business developed under the Multi-Unit Development Agreement, you must sign the form of Franchise Agreement that we are then offering to new franchisees which may differ from the current Franchise Agreement. The size of the Development Area will vary depending upon local market conditions and the number of Hyper Kidz Businesses to be developed.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the form for the Multi-Unit Development Agreement is included as Exhibit C. This agreement allows franchisees, under certain circumstances, to develop multiple Hyper Kidz Businesses within a specific geographic area, referred to as the Development Area. The Development Area's description will be included in the Multi-Unit Development Agreement.
Under the Multi-Unit Development Agreement, a franchisee must establish at least three Hyper Kidz Businesses within the Development Area, following a minimum performance schedule. For each location, a separate Franchise Agreement must be signed. The Franchise Agreement for the first Hyper Kidz Business opened under the Multi-Unit Development Agreement is in the form attached as Exhibit B and will be signed concurrently with the Multi-Unit Development Agreement.
For each subsequent Hyper Kidz Business developed under the Multi-Unit Development Agreement, the franchisee must sign the then-current form of the Franchise Agreement offered to new franchisees, which may differ from the initial Franchise Agreement. The size of the Development Area will vary based on local market conditions and the number of Hyper Kidz Businesses to be developed. This approach is fairly common in franchising, allowing faster expansion for both the franchisor and franchisee.