What must a Hyper Kidz franchisee do before obtaining a site for their Franchised Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You must select a site that you propose to use for your Franchised Business and you must submit to us all information we require to evaluate the site you propose. You may not obtain the site (by lease, sublease or purchase agreement) until the site has been approved by us. We have the right to review any lease, sublease or purchase agreement for the approved site before you sign it. At our request, you and your landlord must sign our form of Collateral Assignment of Lease, attached to the Franchise Agreement as Attachment 6.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a prospective franchisee must first select a site for their Franchised Business and then submit all required information about the proposed site to Hyper Kidz for evaluation. The franchisee cannot secure the site, whether through a lease, sublease, or purchase agreement, until Hyper Kidz has given its approval. Hyper Kidz retains the right to review any lease, sublease, or purchase agreement before the franchisee signs it.
Furthermore, Hyper Kidz can request that the franchisee and their landlord sign Hyper Kidz's standard Collateral Assignment of Lease form, which is included as Attachment 6 to the Franchise Agreement. This process ensures that Hyper Kidz maintains control over the location of its franchises and can enforce brand standards and operational consistency.
This requirement is typical in franchising, as it allows Hyper Kidz to ensure that the chosen location meets specific criteria that are important for the success of the business. These criteria may include factors such as visibility, accessibility, demographics, and proximity to other businesses. By maintaining control over site selection, Hyper Kidz can protect its brand and ensure that all franchisees have the best possible chance of success. Franchisees should carefully consider these requirements and be prepared to work closely with Hyper Kidz during the site selection process.