If a Hyper Kidz franchisee's general manager is not the franchisee or a principal, what are the requirements for the general manager's involvement and approval?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
l, state, and local laws, ordinances, regulations, policies, lists, and 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.
- 11.7.2 Upon the death, disability or termination of employment of your general manager, you shall immediately notify us and designate a successor or acting general manager who meets our thencurrent criteria. In no event shall the appointment of a successor or acting manager be more than ten (10) days after the death, disability or termination of the predecessor manager. Each successor general manager must satisfactorily complete our initial training program within thirty (30) days of appointment by you.
- 11.7.3 You shall hire all employees of the Hyper Kidz Business and shall be exclusively responsible for the terms of their employment, compensation and for the proper training of such employees in the operation of the Hyper Kidz Business. You understand that your employees are not and will not be considered to be our employees in any manner. We may require you to obtain confidentiality and noncompetition agreements from certain of your employees.
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. If neither the franchisee nor a principal is involved in the day-to-day operations, the general manager must devote their full time and best efforts to the business. Hyper Kidz must approve the general manager, and the general manager must successfully complete the initial training program.
The FDD also states that upon 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 who meets Hyper Kidz's then-current criteria. The appointment of a successor or acting manager must occur no more than ten days after the previous manager's departure. Each successor general manager must satisfactorily complete the initial training program within thirty days of their appointment.
Hyper Kidz also reserves the right to hold meetings or conventions of franchisees, which may be held regionally or nationally. Attendance at these meetings may be mandatory for the general manager unless excused by Hyper Kidz. These meetings may be used to discuss new products or services, address concerns, or provide additional training. The franchisee is responsible for all expenses incurred by the general manager for attending these meetings, including travel, lodging, meals, and applicable wages.