If Hyper Kidz does not purchase the assets of the Hyper Kidz Business, who is responsible for the expense of modifications and alterations to distinguish 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 chooses not to purchase the assets of the Hyper Kidz business upon termination or expiration of the franchise agreement, the franchisee is responsible for the expense of any necessary modifications and alterations to distinguish the site. These modifications include removing all distinctive physical and structural features associated with the Hyper Kidz trade dress.
The franchisee must modify the site to clearly differentiate it from its former appearance as a Hyper Kidz location and from other Hyper Kidz businesses. This is to prevent any public association or confusion with the Hyper Kidz brand.
The franchisee must provide evidence of compliance with these obligations to Hyper Kidz 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 will not purchase the Hyper Kidz Business.