If a Hyper Kidz franchisee denies being in default, how many days do they have to notify Hyper Kidz of their position?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.7 During the term of this Agreement, an officer or agent of ours shall have the right to inspect any Hyper Kidz Business in which you have an interest at reasonable times and during normal business hours to the extent reasonably necessary to determine whether the conditions of this Section 12 are being satisfied. If, by reason of such inspections or otherwise, we have reason to believe that you are not in full compliance with the terms of this Section, we shall give notice of such default to you, specifying the nature of such default. If you deny that you are in default hereunder, as specified by us, you shall have the burden of establishing that such default does not exist and shall give notice to us of your position within ten (10) days of receipt of the notice from us. Unless you so deny such default, you shall immediately take all steps to cure said default in a manner satisfactory to us.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if Hyper Kidz notifies a franchisee of a default and the franchisee denies this default, the franchisee must notify Hyper Kidz of their position within ten days of receiving the default notice. This notification must be in writing.
This requirement places a strict deadline on the franchisee to respond and contest the default claim. Failure to notify Hyper Kidz within the specified timeframe means the franchisee is considered to have accepted the default, and Hyper Kidz can proceed with actions to remedy the default.
It is important for prospective Hyper Kidz franchisees to understand this clause, as it highlights the importance of promptly addressing any default notices from the franchisor. Franchisees should consult with legal counsel to understand their rights and obligations if they receive a default notice and believe it is unwarranted. Documenting all communications and actions taken in response to a default notice is crucial to protect the franchisee's interests.