If neither the franchisee nor a Principal is involved in the day-to-day operations of a Hyper Kidz franchise, what are the requirements for the General Manager?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
We recommend, but do not require, that you or one of your Principals actively participate in the operation of your Franchised Business. If you or one of your Principals will not be involved in the day-today operation of your Franchised Business, your General Manager must devote its full time and best efforts to the operation of your Franchised Business and we may communicate with and rely on the decisions made by your General Manager. Your General Manager must be approved by us and must have satisfactorily completed our initial training program. We do not require that your General Manager or any other personnel have an ownership interest in you or your Franchised Business, which will be at your discretion. In addition, if you are a business entity, we do not require that your General Manager or on premises supervisor have any ownership interest in your business. If your General Manager is replaced for any reason, the new General Manager must be approved by us and must satisfactorily complete our initial training program, at your expense, within 30 days after he or she begins working as your General Manager.
Even if you do not participate in the daily operation of the Franchised Business, you or one of your Principals must satisfactorily complete our initial training program, and you must make sure that the Franchised Business is operated in compliance with the Franchise Agreement, the Manual, and the System.
Your General Manager must be qualified, must complete our training program to our satisfaction, and must pass a rigorous screening test. As described in Item 14, we may require you to obtain confidentiality and/or non-competition agreements from your Principals as well as from some of your key employees, including your General Manager. Your Hyper Kidz Business must be open and operating on the days and during the times we specify in the Manual, unless applicable law or the terms of your lease require different hours.
As stated in Item 1, all of your employees must pass a rigorous screening process. You may not employ anyone who has been convicted of a sex crime or a crime against a child, or who does not otherwise meet our requirements.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, while it's recommended that a franchisee or one of their principals actively participate in the operation of the Hyper Kidz business, it is not required. If neither the franchisee nor a principal will be involved in the daily operations, the General Manager must fulfill specific requirements. The General Manager must devote their full time and best efforts to the operation of the Hyper Kidz business, and Hyper Kidz may communicate with and rely on the decisions made by the General Manager.
The General Manager must be approved by Hyper Kidz and must satisfactorily complete the initial training program. If the General Manager is replaced for any reason, the new General Manager must also be approved by Hyper Kidz and must satisfactorily complete the initial training program within 30 days after they begin working as the General Manager; this will be at the franchisee's expense. The FDD does not require the General Manager to have an ownership interest in the Hyper Kidz Business.
Even if the franchisee or their principals do not participate in the daily operation of the Hyper Kidz Business, they must still satisfactorily complete the initial training program. They also must ensure that the Hyper Kidz Business is operated in compliance with the Franchise Agreement, the Manual, and the System. The General Manager must be qualified and pass a rigorous screening test. All employees must pass a rigorous screening process and may not employ anyone convicted of a sex crime or a crime against a child.