When will a Hyper Kidz franchisee reimburse the Hyper Kidz indemnitees for costs and expenses incurred?

According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee must reimburse Hyper Kidz indemnitees as the costs and expenses are incurred. This means that as Hyper Kidz incurs costs and expenses related to claims for which the franchisee is responsible, the franchisee is obligated to promptly pay those amounts.

This requirement is part of the indemnification agreement, where the franchisee agrees to protect Hyper Kidz from losses, expenses, and liabilities arising from the franchisee's business operations, actions, or advertising. These expenses include attorney's fees and any concurrent or contributing liability incurred by Hyper Kidz.

For a prospective Hyper Kidz franchisee, this implies a significant financial responsibility. They must be prepared to cover legal and other costs incurred by Hyper Kidz as they arise, rather than waiting for a final judgment or settlement. This could strain the franchisee's finances and requires careful management and insurance coverage to mitigate potential risks.