In the Hyper Kidz Franchise Agreement, what term is used to collectively refer to the principals of the franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
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)").
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the term used to collectively refer to the principals of the franchisee in the Franchise Agreement is "Franchisee". The agreement specifies that the franchisor, Boomerang Franchise LLC, enters into an agreement with the franchisee, identifying the franchisee's principals. These principals are then collectively referred to as the "Franchisee" within the agreement.
This designation is important because it clarifies who is bound by the terms and conditions of the Franchise Agreement. By collectively referring to the principals as the "Franchisee", Hyper Kidz ensures that all individuals with significant ownership or controlling interests are jointly responsible for upholding the agreement's obligations. This approach is common in franchising to prevent any ambiguity about accountability and to ensure that all key stakeholders are aligned in operating the franchise according to the franchisor's standards.
Furthermore, the FDD defines "Principals" as all persons or entities holding direct or indirect legal or beneficial ownership interests in the franchisee, as well as those with other direct or indirect property rights in the agreement, the franchise, or the Hyper Kidz Business. This definition ensures that all individuals with a vested interest in the franchise are considered principals and are therefore collectively referred to as the "Franchisee" in the agreement. This comprehensive definition helps to avoid any loopholes or ambiguities regarding who is responsible for adhering to the terms of the franchise agreement.