Are Hyper Kidz franchisees required to replace obsolete furnishings?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You must keep your Hyper Kidz Business very clean and maintain it in good repair and condition. You must make any additions, alterations, repairs and replacements, including repainting or replacement of obsolete signs, furnishings, equipment, and décor, as we may reasonably direct. You must not make any changes to the premises without obtaining our written consent before you make the changes. You must obtain and pay for any new or additional equipment, including computer hardware and software, fixtures, supplies and other products and materials that you must have to offer and sell new products and services from your Hyper Kidz Business.
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11.1.2 In addition to our rights to terminate this Agreement as set forth herein, if you do not maintain the condition and appearance of the Hyper Kidz Business as herein required, we may, upon not less than ten (10) days' notice to you, or immediately in cases of health or sanitation hazards or other public endangerment, and without liability for trespass or tort: (a) arrange for the necessary cleaning, sanitation, repair, remodeling, upgrading, painting or decorating; or (b) replace the necessary fixtures, furnishings, equipment, or signs. You shall pay the entire cost thereof following the receipt of a bill for such work from us.
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4.10 Hyper Kidz Business Refurbishment
At our request, which shall not be more frequently than every five (5) years, you shall refurbish the Hyper Kidz Business at your sole cost and expense so that it conforms to the building design, Trade Dress, color schemes, Design Specifications and presentation of the Marks in a manner consistent with the image then in effect for new Hyper Kidz Businesses under the System, including, without limitation, remodeling, redecoration and modifications to existing improvements. Refurbishment does not include regular maintenance of your Hyper Kidz Business and its equipment and furnishings, and it does not include any technological upgrades we may require during the term of this Agreement.
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(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;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISE MAY SELL (FDD page 41)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must make replacements of obsolete furnishings, equipment, and décor as reasonably directed by Hyper Kidz. Franchisees must also make any additions, alterations, and repairs as directed by Hyper Kidz. However, Hyper Kidz will not require a franchisee to replace any obsolete equipment unless Hyper Kidz has initiated a program to replace such equipment as it becomes necessary for all Hyper Kidz Businesses in the System.
Hyper Kidz also has the right to arrange for the replacement of necessary fixtures, furnishings, equipment, or signs if the franchisee does not maintain the condition and appearance of the Hyper Kidz Business as required. Hyper Kidz will provide the franchisee with a bill for the work, which the franchisee must pay.
Furthermore, franchisees must refurbish the Hyper Kidz Business at their sole cost and expense, at Hyper Kidz's request, so that it conforms to the building design, Trade Dress, color schemes, Design Specifications, and presentation of the Marks in a manner consistent with the image then in effect for new Hyper Kidz Businesses under the System. This refurbishment is not required more frequently than every five years and does not include regular maintenance or technological upgrades that Hyper Kidz may require.