If the Hyper Kidz Fund is terminated, does Hyper Kidz have the right to reinstate it?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) We retain the right, in our sole discretion, to terminate the Fund.
The Fund shall not be terminated until all monies in the Fund have been expended for advertising and promotional purposes.
If we terminate the Fund, we shall have the right to reinstate such Fund.
Any reinstated Fund shall be maintained and operated as described in this Section 12.1.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz retains the right to reinstate the advertising fund if it is terminated. The FDD specifies that any reinstated fund will be maintained and operated as described in the relevant section of the agreement.
This clause provides Hyper Kidz with the flexibility to re-establish the advertising fund should circumstances change after its initial termination. For a prospective franchisee, this means that even if the advertising fund is terminated, it could be reinstated at any time during the franchise agreement.
It is important to note that the FDD does not specify the conditions under which the fund might be reinstated or how franchisees would be notified. A prospective franchisee should seek clarification from Hyper Kidz regarding the specific circumstances that would lead to reinstatement of the fund and the procedures involved.