Does the Hyper Kidz Franchise Agreement specify any exceptions to the requirement of immediately paying all amounts owed to Hyper Kidz and its Affiliates upon termination or expiration?

According to Hyper Kidz's 2024 Franchise Disclosure Document, the Franchise Agreement stipulates that upon termination or expiration, a franchisee must immediately pay all outstanding amounts to Hyper Kidz and its affiliates. This includes royalty fees, brand development fees, amounts owed for purchases, and any accrued interest.

This requirement means that a franchisee cannot delay or negotiate payment terms upon exiting the Hyper Kidz system. All financial obligations must be settled immediately. This is a fairly standard practice in franchising, as franchisors typically want to ensure a clean break and avoid prolonged disputes over outstanding payments.

While the FDD excerpt specifies the immediate payment requirement, it does not detail any specific exceptions to this rule. A prospective franchisee should clarify with Hyper Kidz whether any circumstances might allow for delayed or alternative payment arrangements upon termination or expiration. Understanding this policy is crucial for financial planning and managing potential exit scenarios.