Is a Hyper Kidz franchisee required to identify themselves as the independent owner of the Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
her with interest thereon, and (b) you shall reimburse us for the cost of such inspection or audit including, without limitation, reasonable legal fees and accountants' fees, and the travel expenses, room and board and applicable per diem charges for our representatives or agents. The foregoing remedies shall be in addition to all our other remedies and rights hereunder or under applicable law.
ARTICLE 15: INDEPENDENT LICENSEES; INDEMNIFICATION
15.1 No Fiduciary Relationship
The parties acknowledge and agree that you shall be an independent licensee and this Agreement does not create a fiduciary relationship between them, and that nothing in this Agreement is intended to constitute either party an agent, legal representative, subsidiary, joint venturer, partner, employee, joint employer or servant of the other for any purpose. You understand and agree that you are and will be an independent contractor under this Agreement. Nothing in this Agreement may be interpreted as creating a partnership, joint venture, agency, employment or fiduciary relationship of any kind. Your employees are not our employees. Neither you nor any of your employees whose compensation you pay may in any way, directly or by implication, shall be considered our employee for any purpose, regardless of inclusion in
mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. We will not have the power to hire or terminate the employment of your employees. You expressly agree, and will never claim otherwise, that our authority under this Agreement to determine that certain of your employees are qualified to perform certain tasks for your Hyper Kidz Business does not directly or indirectly vest in us the power to influence the employment terms of any such employee.
You agree that you alone are to exercise day-to-day control over all operations, activities and elements of your Hyper Kidz Business, and that under no circumstance shall we do so or be deemed to do so. You further acknowledge and agree, and will never claim otherwise, that the various restrictions, prohibitions, specifications and procedures of the System which you are required to comply with under this Agreement, whether set forth in our Operations Manual or otherwise, do not directly or indirectly constitute, suggest, infer or imply that we control any aspect or element of the day-to-day operations of your Hyper Kidz Business, which you alone control, but only constitute standards you must adhere to when exercising your control of the day-to-day operations of your Hyper Kidz Business.
15.2 Independent Licensee
During the term of this Agreement, you shall hold yourself out to the public as an independent licensee conducting your Hyper Kidz Business operations pursuant to the rights granted by us.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, franchisees are considered independent licensees. Article 15.1 states that the agreement does not establish a fiduciary relationship and that franchisees are not agents, legal representatives, subsidiaries, joint ventures, partners, employees, or servants of Hyper Kidz. This underscores that franchisees operate as independent contractors.
Hyper Kidz franchisees are responsible for the day-to-day control over all aspects of their Hyper Kidz Business. While franchisees must comply with the standards and procedures outlined in the Operations Manual, these guidelines do not imply that Hyper Kidz controls the daily operations. The agreement specifies that the franchisee alone controls the day-to-day operations of the Hyper Kidz Business.
Upon termination or expiration of the franchise agreement, franchisees must not identify themselves or their business as a current or former Hyper Kidz Business or franchisee. They must also discontinue using any marks or trade dress associated with Hyper Kidz. This further emphasizes the separation between the franchisee's independent operation and the Hyper Kidz brand, particularly after the agreement ends.