What information and materials must a Hyper Kidz franchisee submit for a proposed site?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You must select the site for your Hyper Kidz Business, and you must obtain our written acceptance of any proposed site in accordance with our procedures. Within 180 days after you sign the Franchise Agreement, you must submit to us the information and materials we may reasonably require for your proposed site, including demographic, commercial and other information, and photographs. We will consider the site based on demographic characteristics of the proposed site, traffic patterns, parking, the predominant character of the neighborhood, competition from other businesses providing similar services within the area (including other Hyper Kidz Businesses), the number of households, income levels, population, the purchase price or lease terms for the proposed site and other commercial characteristics, the size of the premises, appearance, and other physical characteristics of the proposed site. (Franchise Agreement – 4.1)
We will have 30 days after we receive this information and materials from you to approve or disapprove the proposed site as the location for your Hyper Kidz Business. If we do not provide our specific approval of a proposed site, the site is deemed not approved. Our approval only means that the site meets our requirements for a Hyper Kidz Business. We also reserve the right to approve your lease. We will not lease a site and then sublease it to you. (Franchise Agreement 4.1.2)
If you do not locate a suitable site within 180 days after you sign the Franchise Agreement, we will provide you with an additional 30 days to locate a suitable site. If you do not locate a suitable site within this additional 30-day period, we may provide you with an additional extension, in our discretion, or we may terminate the Franchise Agreement. (Franchise Agreement 4.1.2)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a prospective franchisee must submit required information and materials for their proposed site within 180 days of signing the Franchise Agreement. This submission must include demographic, commercial, and other information, as well as photographs of the proposed location.
Hyper Kidz will then evaluate the site based on several factors. These include the demographic characteristics of the area, traffic patterns, parking availability, the nature of the neighborhood, competition from similar businesses (including other Hyper Kidz locations), the number of households, income levels, and population density. The franchisor will also consider the financial aspects, such as the purchase price or lease terms, as well as the physical attributes of the site, including its size and appearance.
Hyper Kidz has 30 days to either approve or disapprove the proposed site after receiving the franchisee's submission. If Hyper Kidz does not explicitly approve the site within this timeframe, it is considered disapproved. Even if a site is approved, this only indicates that it meets Hyper Kidz's requirements for a business location. Hyper Kidz also reserves the right to approve the franchisee's lease agreement, but will not lease the site themselves and then sublease it to the franchisee.
If a franchisee fails to secure a suitable site within the initial 180-day period, Hyper Kidz will grant an additional 30 days to find a location. After this extension, Hyper Kidz may, at its discretion, offer a further extension or terminate the Franchise Agreement if a suitable site is still not found. This highlights the importance of thorough site selection and the potential consequences of not meeting the franchisor's requirements within the specified timeframes.