What happens if a Hyper Kidz franchisee ceases to operate all of their businesses?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
9.1.9 If you or any of your affiliates cease to operate all of the Hyper Kidz Businesses opened pursuant to the terms of this Agreement.
9.2 Upon occurrence of any of the events stated in this Section 9.2, we may, without prejudice to any other rights or remedies contained in this Agreement or provided by law or equity, terminate this
Agreement. Such termination shall be effective thirty (30) days after written notice (or such other notice as may be required by applicable state law) is given by us to you of any of such events, if such defaults are not cured within such period:
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee or their affiliates cease to operate all of their Hyper Kidz businesses opened under the agreement, Hyper Kidz may terminate the agreement. Hyper Kidz will provide a written notice of termination, effective 30 days after the notice, unless the franchisee corrects the issue within that period or a different notice period is required by state law.
This means that a Hyper Kidz franchisee must maintain continuous operation of all their locations to avoid potential termination of their franchise agreement. Ceasing operations at all locations, for any reason, triggers Hyper Kidz's right to terminate the agreement, which could result in the loss of the franchise and associated rights.
This clause is a standard inclusion in franchise agreements to protect the brand and ensure consistent operation across all locations. Prospective Hyper Kidz franchisees should carefully consider their ability to maintain continuous operations at all locations before entering into a franchise agreement.