What happens if the transfer is of an Owner's interest in the Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) a transfer of ownership in the Hyper Kidz Business or the assets of the Hyper Kidz Business, other than inventory in the ordinary course of business, may only be made in
conjunction with a transfer of this Agreement. If the transfer is of an Owner's interest in you then the transferee's name and relevant information shall be added as Attachment 7 hereto and the transferee shall then be bound by all provisions applicable to Principals;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if the transfer involves an Owner's interest in the franchise, the transferee's name and relevant information will be added as Attachment 7 to the franchise agreement. Subsequently, the transferee will be bound by all provisions applicable to Principals.
This means that the person or entity acquiring the ownership interest must meet Hyper Kidz's standards for franchisees and adhere to all obligations outlined for Principals in the franchise agreement. Attachment 7 likely contains details about the Principals and their roles, so the transferee will step into those responsibilities.
This condition ensures that Hyper Kidz maintains control over who its franchisees are and that all owners are held to the same standards and obligations. Prospective franchisees should carefully review the requirements for Principals and understand the implications of becoming an owner in a Hyper Kidz franchise.