Does Hyper Kidz lease a site and then sublease it to the franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ments 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)
Opening
We estimate that the time from when the Franchise Agreement is signed to the opening of the Hyper Kidz Business will be approximately 9 to 12 months. This time may be shorter or longer depending on the time necessary to obtain an accepted site, to obtain financing, to obtain the permits and licenses for the construction and operation of the Hyper Kidz Business, to complete construction or remodeling as it may be affected by weather conditions, shortages, delivery schedules and other similar factors, to complete the interior and exterior of the Hyper Kidz Business, including decorating, purchasing and installing fixtures, equipment and signs, and to complete preparation for operating the Hyper Kidz Business, including
purchasing inventory and supplies, and completing our initial training program. You must open your Hyper Kidz Business and begin business not later than 12 months after you sign the Franchise Agreement. If you are unable to open your Hyper Kidz Business within the required timeframe, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. You may not open your Hyper Kidz Business for business until we have approved you to do so.
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, Hyper Kidz does not lease a site and then sublease it to the franchisee. The franchisee is responsible for selecting the site for their Hyper Kidz business, and Hyper Kidz must provide written acceptance of the proposed site.
The FDD outlines a process where the franchisee submits information about the proposed site, including demographic, commercial, and other relevant data, within 180 days of signing the Franchise Agreement. Hyper Kidz then evaluates the site based on various factors such as demographics, traffic patterns, competition, and lease terms. Hyper Kidz has 30 days to approve or disapprove the site. If Hyper Kidz does not provide specific approval, the site is deemed not approved.
Hyper Kidz also reserves the right to approve the franchisee's lease agreement. The franchisee has an initial 180 days to find a suitable site, with a possible 30-day extension. Failure to secure a site within this timeframe may lead to termination of the Franchise Agreement, although Hyper Kidz may grant additional extensions at its discretion. This process ensures that the franchisee takes the lead in site selection while Hyper Kidz maintains control over the suitability of the location and lease terms.