If Hyper Kidz temporarily operates my Hyper Kidz Business, what fee will I be required to pay?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ave under this Agreement. All monies from the operation of the Hyper Kidz Business during such period of operation by us shall be kept in a separate account, and the expenses of the Hyper Kidz Business, including reasonable compensation and expenses for our representative, shall be charged to said account. If, as herein provided, we temporarily operate the Hyper Kidz Business franchised herein for you, you agree to indemnify and hold harmless us and any representative of ours who may act hereunder, from any and all acts which we may perform, as regards the interests of you or third parties.
22.9 Step-In Rights
If we determine in our sole judgment that the operation of your Hyper Kidz Business is in jeopardy, or if a default occurs, then in order to prevent an interruption of the Hyper Kidz Business which would cause harm to the System and thereby lessen its value, you authorize us to operate your Hyper Kidz Business for as long as we deem necessary and practical, and without waiver of any other rights or remedies which we may have under this Agreement. In our sole judgment, we may deem you incapable of operating the Hyper Kidz Business if, without limitation, you are absent or incapacitated by reason of illness or death; you have failed to pay when due or have failed to remove any and all liens or encumbrances of every kind placed upon or against your Hyper Kidz Business; or we determine that operational problems require that we operate your Hyper Kidz Business for a period of time that we determine, in our sole discretion, to be necessary to maintain the operation of the Hyper Kidz Business as a going concern.
We shall keep in a separate account all monies generated by the operation of your Hyper Kidz Business, less the expenses of the Hyper Kidz Business, including reasonable compensation and expenses for our representatives. If we temporarily operate your Hyper Kidz Business on your behalf, you agree to pay to us the then-current fee for the management and maintenance of the Business in your absence.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if Hyper Kidz determines that the operation of your Hyper Kidz Business is in jeopardy or if you are in default of your agreement, they have the right to temporarily operate your business. This is to prevent any interruption of the business that could harm the Hyper Kidz system. If Hyper Kidz exercises this right, you must pay the then-current fee for the management and maintenance of the business during your absence.
Hyper Kidz will keep all the money made from running your Hyper Kidz Business in a separate account. From this, they will deduct the expenses of running the business, including reasonable pay and expenses for their representatives. You also agree to protect Hyper Kidz and its representatives from any liabilities for actions that happen during this temporary operation.
Additionally, you are responsible for covering all of Hyper Kidz's reasonable legal fees and costs that come up as a result of them stepping in to operate your Hyper Kidz Business. It is important to note that Hyper Kidz's right to temporarily operate your business does not prevent them from exercising any other rights they have under the agreement, including terminating the agreement.