Can a Hyper Kidz franchisee have a direct ownership interest in another Hyper Kidz Business Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3 The restrictions of Section 9.1 shall not be construed to prohibit you, any of your Principals, or any member of your or their immediate family from having a direct or indirect ownership interest in any Hyper Kidz Business Franchise Agreement for the operation of any Hyper Kidz Business, or any entity owning, controlling or operating a Hyper Kidz Business, or from providing services to any such Hyper Kidz Business pursuant to other agreements with us.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee, their Principals, or their immediate family can have a direct or indirect ownership interest in another Hyper Kidz Business Franchise Agreement. They may also provide services to any such Hyper Kidz Business under other agreements with Hyper Kidz. This allowance provides an opportunity for franchisees to expand their investment within the Hyper Kidz system.
This clause is an exception to the general rule that franchisees and their Principals cannot have an interest in any Competitive Business. A 'Competitive Business' is not defined in this excerpt.
This exception allows franchisees to invest in and operate multiple Hyper Kidz locations, potentially increasing their revenue streams and overall business success. However, franchisees must still adhere to the terms of their franchise agreements and any other agreements with Hyper Kidz when providing services to other locations.