What must a Hyper Kidz franchisee furnish to the franchisor upon renewal of each insurance policy?

According to Hyper Kidz's 2024 Franchise Disclosure Document, upon renewal of each insurance policy, a franchisee must furnish the franchisor with evidence of each renewal or replacement insurance policy to be maintained for the immediately following term. The franchisee must also provide evidence of payment of the premiums.

This requirement ensures that Hyper Kidz franchisees maintain continuous and adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. Franchisees must ensure they have systems in place to track insurance policy renewals and premium payments to comply with this obligation.

Failure to provide satisfactory evidence of insurance coverage or premium payments can lead to Hyper Kidz obtaining the insurance on the franchisee's behalf. In such cases, the franchisee is responsible for reimbursing Hyper Kidz for the costs and premiums incurred, along with a 10% administrative fee. Continued failure to maintain insurance or reimburse Hyper Kidz can result in the termination of the franchise agreement.