Can Hyper Kidz inspect the business before it opens?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ds**
You shall preserve for three (3) years all business, accounting, tax, inventory, financial, legal, personnel, operations and other records relating to the Hyper Kidz Business and to you. We shall have the right with or without prior notice to inspect, audit and copy such records during business hours. You shall make such records available for examination at the Hyper Kidz Business.
ARTICLE 14: INSPECTIONS AND AUDITS
14.1 Our Right to Inspect the Hyper Kidz Business
To determine whether you and the Hyper Kidz Business are complying with this Agreement and with specifications, standards and operating procedures we prescribe for the operation of Hyper Kidz Businesses, we or our agents or representatives shall have the right at any reasonable time before or after the Hyper Kidz Business opens, and with or without notice to you, to: (a) inspect the Site and the equipment,
fixtures, signs, food, inventory and supplies of the Hyper Kidz Business; (b) observe, photograph and video tape the operations of the Hyper Kidz Business for such consecutive or intermittent periods as we deem necessary; (c) remove samples of any Products without payment therefor for testing and analysis; (d) interview personnel of the Hyper Kidz Business; (e) interview customers of the Hyper Kidz Business; and (f) inspect and copy any books, records and documents relating to the operation of the Hyper Kidz Business. You agree to cooperate fully with us and/or our agents in connection with any such inspections, observations, photographing and videotaping, Product removal and interviews. You shall present to your customers such evaluation forms as we periodically prescribe and shall participate and/or request your customers to participate in any surveys performed by us or on our behalf.
You shall install and maintain the communications equipment, software and highspeed internet access necessary to permit us to electronically access your computer system, thereby permitting us to inspect and monitor information concerning your inventory, sales of the Hyper Kidz Business, Gross Sales, and such other information as may be contained or stored in the computer system.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz has the right to inspect the business both before and after it opens. To ensure compliance with the franchise agreement, specifications, standards, and operating procedures, Hyper Kidz, its agents, or representatives can conduct inspections at any reasonable time, with or without prior notice to the franchisee.
These inspections may include examining the site, equipment, fixtures, signs, food, inventory, and supplies. Hyper Kidz can also observe, photograph, and video tape the business operations, take product samples for testing, interview personnel and customers, and review business records and documents. Franchisees are required to fully cooperate with Hyper Kidz during these inspections, observations, and interviews, and must also present customer evaluation forms and participate in surveys.
Furthermore, franchisees must install and maintain the necessary communication equipment and high-speed internet access to allow Hyper Kidz to electronically access their computer system. This electronic access enables Hyper Kidz to monitor inventory, sales, gross sales, and other relevant information. Failure to maintain operational and accessible equipment and communication methods is considered a material default under the franchise agreement.