If a Hyper Kidz franchisee does not participate in daily operations, what training requirements apply to the franchisee or their principals?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
nd other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you or your Principals, or any
blocking of your or your Principals' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement.
11.7 Management and Personnel of the Hyper Kidz Business
- 11.7.1 We recommend, but do not require, that you or one of your Principals (if you are a corporate entity) actively participate in the operation of your Hyper Kidz Business. If you or one of your Principals will not be involved in the day-to-day operation of your Hyper Kidz Business, your general manager must devote its full time and best efforts to the operation of your Hyper Kidz Business and we may communicate with and rely on the decisions made by your general manager. We must approve of your general manager and your general manager must successfully complete our initial training program. We do not require that your general manager have an ownership interest in the Hyper Kidz Business. If you do not participate in the daily operation of the Hyper Kidz Business, you or one of your Principals must satisfactorily complete our initial training program, and you must make sure that the Hyper Kidz Business is operated in compliance with this Agreement, the Manual, and the System. The Hyper Kidz Business must be open on the days and during the hours we specify in the Operations Manual, subject to applicable law and the terms of your lease.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, while it is recommended that a franchisee or one of their principals actively participate in the operation of the Hyper Kidz Business, it is not required. However, if the franchisee chooses not to be involved in the day-to-day operations, they must appoint a general manager who will devote their full time and effort to the business. This general manager must be approved by Hyper Kidz and must successfully complete the initial training program. The franchisee can rely on the decisions made by their general manager.
Even if the franchisee opts for a general manager to handle daily operations, the franchisee or one of their principals is still required to satisfactorily complete the initial training program. Additionally, the franchisee must ensure that the Hyper Kidz Business is operated in compliance with the franchise agreement, the Operations Manual, and the Hyper Kidz system standards. This ensures that even absentee owners are aware of the brand's standards and can oversee operations effectively.
In the event of the death, disability, or termination of employment of the general manager, the franchisee must immediately notify Hyper Kidz and designate a successor or acting general manager within ten days. This successor must also meet Hyper Kidz's criteria and complete the initial training program within thirty days of their appointment. This requirement ensures continuity of qualified management and adherence to Hyper Kidz standards, even during unforeseen circumstances.