What happens if Hyper Kidz does not specifically approve a proposed site?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
We will have 30 days after we receive this information and materials from you to approve or disapprove the proposed site as the location for your Hyper Kidz Business. If we do not provide our specific approval of a proposed site, the site is deemed not approved. Our approval only means that the site meets our requirements for a Hyper Kidz Business. We also reserve the right to approve your lease. We will not lease a site and then sublease it to you. (Franchise Agreement 4.1.2)
If you do not locate a suitable site within 180 days after you sign the Franchise Agreement, we will provide you with an additional 30 days to locate a suitable site. If you do not locate a suitable site within this additional 30-day period, we may provide you with an additional extension, in our discretion, or we may terminate the Franchise Agreement. (Franchise Agreement 4.1.2)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if Hyper Kidz does not provide specific approval of a proposed site, the site is deemed not approved. The franchisee is responsible for selecting the site for their Hyper Kidz Business, and must obtain written acceptance from Hyper Kidz in accordance with their procedures.
Within 180 days after signing the Franchise Agreement, the franchisee must submit all required information and materials for the proposed site. This includes demographic, commercial, and other information, as well as photographs. Hyper Kidz will then consider the site based on various factors, such as demographic characteristics, traffic patterns, parking, competition, number of households, income levels, population, purchase price or lease terms, size of the premises, appearance, and other physical characteristics.
Hyper Kidz has 30 days after receiving the franchisee's information to either approve or disapprove the proposed site. If a suitable site is not located within the initial 180-day period, Hyper Kidz may grant an additional 30 days. However, if a suitable site is still not found within this extension, Hyper Kidz has the discretion to provide a further extension or terminate the Franchise Agreement. This highlights the importance of thorough site selection and communication with Hyper Kidz to ensure compliance with their requirements and avoid potential termination of the agreement.