Is a Hyper Kidz franchisee required to pay a relocation fee if they move their business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
If, during the term of the Franchise Agreement, you wish to relocate your Hyper Kidz Business, or if your Hyper Kidz Business is damaged or destroyed and cannot be repaired within 60 days, you must submit to us in writing the materials we require to consider your request, including information concerning
the proposed new location for your Hyper Kidz Business. You must also meet certain other requirements, such as being in compliance with the Franchise Agreement, the location meets our then-current requirements for a Hyper Kidz Business and is located within your Designated Territory, and you must sign our then-current form of Franchise Agreement. If we permit you to relocate, you will not pay a new initial franchise fee when you sign the new Franchise Agreement. We do not charge a relocation fee.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee will not be charged a relocation fee if they move their business. The FDD states explicitly that "We do not charge a relocation fee." This is a notable benefit for franchisees, as relocation fees can be a substantial expense in some franchise systems.
However, franchisees must meet several requirements before Hyper Kidz will permit a relocation. These include being in compliance with the Franchise Agreement, ensuring the new location meets Hyper Kidz's then-current requirements, and that the new location is within the franchisee's Designated Territory. Additionally, the franchisee must sign Hyper Kidz's then-current form of Franchise Agreement.
If a Hyper Kidz business is damaged or destroyed and cannot be repaired within 60 days, the franchisee must submit a written request to Hyper Kidz with information about the proposed new location. This process ensures that any relocation aligns with Hyper Kidz's strategic interests and maintains brand standards. While the absence of a relocation fee is advantageous, franchisees should carefully consider the other conditions and requirements associated with moving their Hyper Kidz business.