Where is a Hyper Kidz franchisee authorized to operate the Franchised Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
d diligently perform your obligations hereunder and that you will continuously exert your best efforts to promote and enhance the business of the Hyper Kidz Business and the goodwill of the Marks. You shall not conduct the business of the Hyper Kidz Business from any location other than the Site.
3.2 Territorial Rights
This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within the Territory. Subject to Section 3.2 below, Franchisor agrees that during the Term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Hyper Kidz outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Hyper Kidz franchises bordering and adjacent to the Territory. Except as set forth in this Agreement, Franchisee is prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution as more fully specified herein. You expressly acknowledge that this Franchise is nonexclusive, but that this Agreement does grant you a protected area or territory for your Hyper Kidz Business referred to herein as your "Designated Territory". Your Designated Territory is described in Attachment 3 hereof.
3.3 Rights Retained by Us
We retain all rights with respect to Hyper Kidz Businesses, the Marks and the sale of Approved Products and Services and any other products and services anywhere in the world including, without limitation:
- (a) to produce, offer and sell and to grant others the right to produce, offer and sell the Products offered at Hyper Kidz Outlets and any other goods through similar or dissimilar channels of distribution, both within and outside the Designated Territory, under trade and service marks other than the Marks and under any terms and conditions we deem appropriate;
- (b) to operate and to grant others the right to operate Hyper Kidz Outlets located outside the Designated Territory under any terms and conditions we deem appropriate and regardless of proximity to your Hyper Kidz Outlet;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee is granted the right to operate their Hyper Kidz Business at a single, specific location, referred to as the 'Site.' This Site is detailed in Attachment 3 of the Franchise Agreement. The franchisee must conduct the Hyper Kidz Business exclusively from this approved location. This means the physical playground and all related operations must be based at the Site.
In addition to the designated Site, the Franchise Agreement grants the franchisee the right to operate within a defined 'Territory.' While Hyper Kidz will not operate or authorize another franchisee to operate a Hyper Kidz outlet within that territory, this protection is conditional. The franchisee must remain in compliance with the Franchise Agreement, and the agreement must not be terminated. Hyper Kidz retains the right to open or franchise locations bordering the franchisee's territory.
The franchisee is restricted from actively seeking customers outside of their designated territory. While advertising within the territory is permitted, franchisees must not directly solicit customers beyond their designated area. This includes restrictions on internet-based solicitations and other electronic communications directed at prospective clients outside the territory, except for party bookings made through the Hyper Kidz website. This ensures that franchisees focus their efforts within their assigned area and do not encroach on other franchisees' territories.