What is the 'Franchise Agreement' in the context of a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
OWNERSHIP INTERESTS IN FRANCHISEE | | ATTACHMENT 8: | SPOUSAL GUARANTY | | ATTACHMENT 9: | CONFIDENTIALITY AND NON-COMPETE AGREEMENT | | ATTACHMENT 10: | INTERNET ADVERTISING, SOCIAL MEDIA AND TELEPHONE ACCOUNT AGREEMENT | i
BOOMERANG FRANCHISE LLC FRANCHISE AGREEMENT
THIS AGREEMENT is made and entered into this day by and between the franchisor, Boomerang Franchise LLC a Maryland limited liability company whose principal office is at 6120 Syracuse Court, Clarksville, Maryland, 21029 ("we", "us" or "our"), and a(n) , with its principal place of business located at and 's principals , and individual residing at , and , an individual residing at And Principal(s) shall be collectively referred to in this agreement as the "Franchisee". ("Principal(s)").
ARTICLE 1: INTRODUCTION
- 1.1 We and our Affiliates have developed and continue to develop methods of operating an interactive, indoor playground for kids aged 6 months to 13 years that encourages healthy and active social play ("Approved Products and Services"). Such a business is defined below as a "Hyper Kidz Business". Hyper Kidz Businesses operate at locations that feature the "System", which consists of distinctive signage, interior and exterior design, décor and color scheme; uniform standards, specifications, and procedures for operations; quality and uniformity of products and services offered; inventory, management and financial control procedures; training and assistance; and advertising and promotional programs, all of which we may modify from time to time.
- 1.2 We grant to certain qualified persons or entities, and who meet our qualifications and who are willing to undertake the investment and effort, the right to own and operate a Hyper Kidz Business at the Site using the System and the Marks. Pursuant to this Agreement, we will grant rights to you to own and operate a Hyper Kidz Business at the Site and to operate the Hyper Kidz Business according to the terms of this Agreement.
- 1.3 Certain terms that are capitalized in this Agreement are defined in Article 2 or at the places in this Agreement where they first appear.
ARTICLE 2: DEFINITIONS
- 2.1 For purposes of this Agreement, the terms listed below have the meanings that follow them. Other terms used in this Agreement are defined and construed in the context in which they occur.
- 2.1.1 "Affiliate" Any person, entity or company that directly or indirectly owns or controls a party, that is directly or indirectly owned or controlled by a party, or that is under common control with a party. For purposes of this definition, "control" means the power to direct or cause the direction of the management and policies of an entity.
- 2.1.2 "Competitive Business" A business other than a Hyper Kidz Business that: (a) features the Approved Products and Services or substantially similar products and services; or (b) grants or has granted franchises or licenses or establishes or has established joint ventures for the development and/or operation of a business described in the foregoing clause (a).
- 2.1.3 "Domain Name" The internet domain name selected or used in connection with a Hyper Kidz Business and any other domain names that may be utilized by us or which we may authorize you to use.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Franchise Agreement is the legal contract between Boomerang Franchise LLC (the franchisor) and the franchisee that grants the franchisee the right to operate a Hyper Kidz Business. The agreement allows the franchisee to operate an interactive, indoor playground for kids aged 6 months to 13 years at a specific location, utilizing Hyper Kidz's system, marks, and approved products and services. The Hyper Kidz system includes distinctive signage, interior and exterior design, décor and color scheme; uniform standards, specifications, and procedures for operations; quality and uniformity of products and services offered; inventory, management and financial control procedures; training and assistance; and advertising and promotional programs.
The Franchise Agreement outlines the terms and conditions under which the franchisee can operate the Hyper Kidz Business, including the use of the Hyper Kidz system and marks. It specifies that the franchisee must meet Hyper Kidz's qualifications and be willing to undertake the necessary investment and effort. The agreement also includes definitions of key terms used within the document to ensure clarity and understanding between both parties.
The agreement covers various aspects of the franchise relationship, such as the grant of the franchise, the term of the agreement (ten years), territorial rights, and the obligations of both the franchisor and franchisee. It also addresses fees, including the initial franchise fee of $42,500 and a training fee of $7,500. The Franchise Agreement also includes provisions for renewal, transfer, and termination of the franchise, as well as restrictions on competition during and after the term of the agreement. The agreement ensures that the franchisee operates the Hyper Kidz Business in accordance with Hyper Kidz's standards and protects Hyper Kidz's brand and reputation.