Which insurance company provided the Surety Bond for Hyper Kidz in Maryland?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- Section 25.2 and Attachment 1 FRANCHISEE ACKNOWLEDGEMENT STATEMENT to the Franchise Agreement and section 21 of the Multi-Unit Development Agreement are removed.
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- Item 5 of the Disclosure Document, Article 10 of the Franchise Agreement, and Section 2 of the Multi-Unit Development Agreement are amended to state, "In the State of Maryland, we have secured a Surety Bond in the amount of $141,000 from The Ohio Casualty Insurance Company. This Surety Bond requirement has been im
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Surety Bond for Hyper Kidz in the state of Maryland is provided by The Ohio Casualty Insurance Company. This bond is in the amount of $141,000.
The requirement for Hyper Kidz to secure a Surety Bond was imposed by the Office of the Attorney General of the State of Maryland. This imposition is directly related to Hyper Kidz's financial condition, suggesting that the state deemed it necessary to provide additional financial protection to franchisees due to concerns about the franchisor's financial stability.
The Surety Bond is officially on file with the Maryland Securities Division, which means that prospective Hyper Kidz franchisees in Maryland have some level of financial protection in case Hyper Kidz fails to meet its obligations. This bond serves as a form of security, ensuring that franchisees have recourse if Hyper Kidz encounters financial difficulties that impact its ability to support its franchisees.