What is the length of the additional term a Hyper Kidz franchisee can renew for?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
If you satisfy each of the requirements set forth below, you may renew for one (1) additional term of ten (10) years.
- 17.1.1 You shall have been, throughout the initial term of this Agreement, in substantial compliance, and at the expiration of such initial term are in full compliance, with this Agreement, your lease or sublease and all other agreements between you and us or companies or persons associated or affiliated with us.
- 17.1.2 You shall, within six (6) months before the expiration of the initial term, but not later than three (3) months before the expiration of the initial term, provide written notice to us that you wish to sign a Successor Agreement, and we, in turn, shall provide you with any documents that you are required to execute for the successor term, which documents may include, but are not limited to, a general release, our Successor Agreement and all other ancillary agreements, instruments and documents then customarily used by us in the granting of Hyper Kidz Franchises and will require payment of the Successor Agreement Fee. (the "Successor Franchise Documents").
- 17.1.3 You shall execute the Successor Franchise Documents and all other documents and instruments that we require in order to renew. You shall return the executed Successor Franchise
Documents to us, together with payment of a Successor Agreement Fee equal to fifty percent (50%) of our then-current initial franchise fee, by no later than the expiration date of this Agreement. If we do not receive the executed documents and Successor Agreement Fee by such expiration date, then this Agreement shall expire, you shall have no further rights under this Agreement, and you shall comply with the provisions of Article 19 and any other provisions that survive termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee who meets specific requirements can renew their franchise agreement for one additional term of ten years. This provides an opportunity for franchisees to extend their business operations and continue benefiting from the Hyper Kidz brand and system.
To be eligible for renewal, the franchisee must have been in substantial compliance with the franchise agreement, lease, and all other agreements with Hyper Kidz or its affiliates throughout the initial term. Additionally, they must be in full compliance at the time of the initial term's expiration. The franchisee is required to provide written notice to Hyper Kidz of their intent to renew within a specific timeframe: no earlier than six months and no later than three months before the initial term expires.
As part of the renewal process, Hyper Kidz will provide the franchisee with the necessary successor franchise documents, which may include a general release, the successor agreement, and other ancillary agreements. The franchisee must execute these documents and return them to Hyper Kidz along with a successor agreement fee. This fee is equal to fifty percent of Hyper Kidz's then-current initial franchise fee. Failure to submit the executed documents and the fee by the expiration date will result in the termination of the agreement, and the franchisee will lose all further rights under the agreement.