What happens if a proposed Hyper Kidz transferee, its owners, or affiliates have other franchise agreements with Hyper Kidz?

According to Hyper Kidz's 2024 Franchise Disclosure Document, if a proposed transferee, its owners, or affiliates have other franchise or development agreements with Hyper Kidz, they must be in full compliance with all such agreements to be approved for a transfer. Additionally, they must comply with clause (f) of Section 16.3.2 of the franchise agreement. This clause requires Hyper Kidz to approve the material terms and conditions of the transfer, ensuring that the price and payment terms do not negatively impact Hyper Kidz's rights and interests under the agreement. The transferring party must also provide Hyper Kidz with a copy of the executed contract of assignment.

This condition ensures that Hyper Kidz maintains control over who becomes a franchisee and that existing franchisees or their affiliates are in good standing before being allowed to take over another franchise location. It protects Hyper Kidz's brand and system standards by preventing transfers to parties who may not be meeting their current obligations.

For a prospective franchisee, this means that if they or their associated parties already have a Hyper Kidz franchise, they need to ensure all agreements are fully compliant. Any existing issues or breaches of contract could prevent the transfer from being approved. It also highlights the importance of maintaining a good relationship with Hyper Kidz and adhering to the terms of any existing franchise agreements.