If a Hyper Kidz franchisee is married, what document must their spouse sign?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
If you are a corporation or other legal entity, certain provisions of the Franchise Agreement apply to your "Principals" (defined below) and will be noted.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)
What This Means (2024 FDD)
Based on the 2024 Hyper Kidz Franchise Disclosure Document, it is not explicitly stated that a franchisee's spouse must sign a specific document. However, if the franchisee is a corporation or other legal entity, certain provisions of the Franchise Agreement apply to the franchisee's "Principals." While the term "Principals" is used, the FDD does not specify whether this includes the spouse of a franchisee.
Item 22 discusses the conditions for transferring a Hyper Kidz franchise. One of the conditions is that the transferee and its personnel who will have access to the Confidential Information must have signed the Confidentiality and Non-Competition Agreement. It is unclear if this requirement extends to the spouse of a transferee.
To clarify whether a spouse is required to sign any documents, such as a personal guarantee or the Franchise Agreement itself, a prospective Hyper Kidz franchisee should seek clarification from the franchisor. Specifically, they should ask under what circumstances a spouse would be required to sign any agreements or ancillary documents.