If Hyper Kidz does not purchase the assets of the Hyper Kidz Business, what modifications must the franchisee make to the site?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (g) if we do not purchase all or a portion of the assets of the Hyper Kidz Business as provided in Section 19.6, at your expense make such modifications and alterations, including removal of all distinctive physical and structural features associated with the Trade Dress of Hyper Kidz Businesses, as may be necessary to distinguish the Site of the Hyper Kidz Business so clearly from its former appearance and from other Hyper Kidz Businesses as to prevent any possibility that the public will associate the Site with Hyper Kidz Businesses and any confusion created by such association.
- 19.2.2 You shall furnish to us (a) within thirty (30) days after the effective date of termination or expiration, evidence satisfactory to us of your compliance with Subparagraphs (a) and (c) of the foregoing obligations, and (b) within thirty (30) days after the later of expiration of our option to purchase the Hyper Kidz Business as provided in Section 19.6 or receipt of notice that we elect not to purchase the Hyper Kidz Business pursuant to Section 19.6, evidence satisfactory to us of your compliance with the foregoing obligations.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if Hyper Kidz does not purchase the assets of the Hyper Kidz business, the franchisee is responsible for making modifications and alterations to the site. These changes, made at the franchisee's expense, must include the removal of all distinctive physical and structural features associated with the Hyper Kidz trade dress.
The purpose of these modifications is to clearly differentiate the site from its former appearance as a Hyper Kidz location and from other operating Hyper Kidz businesses. This is to prevent any public association with Hyper Kidz and avoid confusion that such an association could create.
The franchisee must provide evidence of compliance with these obligations. This evidence must be satisfactory to Hyper Kidz and furnished within thirty days after the later of either the expiration of Hyper Kidz's option to purchase the business or receipt of notice that Hyper Kidz has elected not to purchase the business.