Does the Hyper Kidz franchise agreement supersede representations made in the Disclosure Document furnished to the franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
The undersigned, personally and as Multi-Unit Developer does hereby certify that he/she has conducted an independent investigation of the business contemplated by this Multi-Unit Development Agreement and the Franchise Agreement, and that the decision to execute the Multi-Unit Development Agreement was based entirely upon the independent investigation by the undersigned; and the undersigned further certifies that he/she has not relied upon, in any way, any claims regarding potential sales, income, or earnings to be derived from the business contemplated by the Franchise Agreement and Multi-Unit Development Agreement, and has not relied upon any claims regarding past or current sales, income or earnings of Franchisor-operated Hyper Kidz Businesses, except as may be included in Item 19 of the Franchise Disclosure Document heretofore provided to Multi-Unit Developer. The undersigned further certifies that he/she understands the risks involved in this investment and Boomerang Franchise LLC makes no representation or guaranty, explicit or implied, that the Multi-Unit Developer will be successful or will recoup his/her investment.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the franchisee acknowledges that their decision to execute the Multi-Unit Development Agreement is based entirely upon their independent investigation. They further certify that they have not relied on any claims regarding potential sales, income, or earnings, except as may be included in Item 19 of the Franchise Disclosure Document. This indicates that while Item 19 may contain some earnings information that can be relied upon, other representations outside of Item 19 are not guaranteed.
This acknowledgment serves to protect Hyper Kidz from potential legal claims based on representations made outside of the formal documentation. It reinforces the importance of the franchisee conducting thorough due diligence and relying on their own investigation and the specific information provided in Item 19 of the FDD. This is a common practice in franchising, where franchisors seek to limit their liability by ensuring franchisees acknowledge they are making an informed decision based on their own research.
For a prospective Hyper Kidz franchisee, this means that any verbal promises or projections made by the franchisor's representatives should be carefully scrutinized and verified. The franchisee should focus on the information provided in Item 19 of the FDD and conduct their own market research and financial analysis to assess the potential profitability of the franchise. It is crucial not to rely solely on the franchisor's representations but to make an independent assessment of the business opportunity.