Are Hyper Kidz franchisees required to replace obsolete equipment?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ny fees charged by your bank. If you incur three (3) insufficient funds fees within any twelve (12) month period, we may terminate this Agreement without providing you the opportunity to cure the default.
10.10 Payment of Additional Fees
You shall pay such other fees or amounts described in this Agreement.
ARTICLE 11: HYPER KIDZ BUSINESS IMAGE AND OPERATION
11.1 Condition and Appearance of the Hyper Kidz Business
11.1.1 You agree that: (a) neither the Hyper Kidz Business nor the Site will be used for any purpose other than the operation of a Hyper Kidz Business in compliance with this Agreement; (b) you will maintain the condition and appearance of the Hyper Kidz Business, its equipment, fixtures, signs, and the Site in accordance with our specifications and standards and consistent with the image of a Hyper Kidz Business; and (c) you will perform such maintenance with respect to the décor, equipment, fixtures, and signs of the Hyper Kidz Business and the Site as may be required from time to time to maintain good condition, appearance, and efficient operation including, without limitation: (i) thorough cleaning, exterminating, repainting and redecorating of the interior and exterior of the Site on a daily basis or at reasonable intervals, as applicable; (ii) interior and exterior repair of the Site; (iii) repair or replacement of damaged, worn out or obsolete equipment, fixtures, and signs, provided we will not require you to replace any obsolete equipment unless we have initiated a program to replace such equipment as it becomes necessary for all Hyper Kidz Businesses in the System; (iv) you will not make any material alterations to
the Site or to the appearance of the Hyper Kidz Business as originally developed without our prior approval in writing; (v) subject to our approval of plans, layouts and designs, you will remodel, expand, redecorate, reequip and refurnish the Site and the Hyper Kidz Business when required by us, but no more often than once every five (5) years, to reflect changes in the operation of Hyper Kidz Businesses prescribed by us and required of new Hyper Kidz Business franchisees. You shall have a reasonable time period remaining under this Agreement to amortize the costs of such improvements. Notwithstanding the provisions above, we can require you to change and/or upgrade equipment at any time to comply with new specifications and standards; and (vi) you will place or display at the interior and exterior of Site only such signs, emblems, lettering, logos, and display and advertising materials that are from time to time approved by us.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISE MAY SELL (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, franchisees are generally responsible for the repair or replacement of damaged, worn out, or obsolete equipment. However, Hyper Kidz will not require a franchisee to replace obsolete equipment unless the company has initiated a program to replace such equipment as it becomes necessary for all Hyper Kidz businesses in the system.
Hyper Kidz also maintains the right to ensure that franchisees maintain the condition and appearance of their Hyper Kidz Business, including equipment and fixtures. If a franchisee fails to do so, Hyper Kidz has the right to arrange for the necessary repairs or replacements at the franchisee's expense. Franchisees are also required to make any additions, alterations, repairs, and replacements, including replacement of obsolete equipment as Hyper Kidz may reasonably direct.
Furthermore, Hyper Kidz can require franchisees to change and/or upgrade equipment at any time to comply with new specifications and standards. Franchisees are also responsible for obtaining and paying for any new or additional equipment that is needed to offer new products and services from their Hyper Kidz Business.