Following termination of the Hyper Kidz agreement, what are franchisees prohibited from doing that would imply a continued relationship with Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION 10: OBLIGATIONS FOLLOWING TERMINATION
- 10.1 Upon termination of this Agreement becoming effective for any reason, or upon expiration of the term hereof, you agree as follows:
- 10.1.1 To cease immediately any attempts to select sites on which to establish Hyper Kidz Businesses.
- 10.1.2 To cease immediately to hold yourself out in any way as a multi-unit developer of ours or to do anything which would indicate a relationship between you and us.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, after the termination of the agreement, franchisees must cease certain activities that could suggest an ongoing relationship with Hyper Kidz. Specifically, franchisees must immediately stop attempting to select sites for establishing Hyper Kidz Businesses.
Additionally, franchisees are required to cease holding themselves out as multi-unit developers of Hyper Kidz or engaging in any actions that might indicate a relationship between the franchisee and Hyper Kidz. This is to ensure that the public and other parties do not mistakenly believe there is a continued affiliation after the franchise agreement has ended.
These obligations are designed to protect the Hyper Kidz brand and prevent confusion among customers and the public regarding who is authorized to represent the brand. Failure to comply with these post-termination obligations could result in legal action by Hyper Kidz to protect its interests.