factual

What is the minimum radius, expressed as driving distance, for a Hyper Kidz Designated Territory?

Hyper_Kidz Franchise · 2024 FDD

Answer from 2024 FDD Document

Your Franchise Agreement will specify the site that will be the Approved Location for your Hyper Kidz Business. Your Franchise Agreement will also specify a Designated Territory, which will be a minimum of 65,000 kids ages 13 & under within a 15-mile radius (Driving Distance), whichever comes first around the Approved Location. Your Designated Territory may be described in terms of street, municipal or other boundaries, and may be depicted on a map that is attached to your Franchise Agreement. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area list as Attachment 3.

Source: Item 12 — TERRITORY (FDD pages 33–36)

What This Means (2024 FDD)

According to Hyper Kidz's 2024 Franchise Disclosure Document, the franchise agreement specifies a Designated Territory for each location. This territory will cover a minimum of 65,000 kids ages 13 and under within a 15-mile radius, measured by driving distance, around the Approved Location. The Designated Territory may also be defined by streets, municipal boundaries, or other boundaries and may be shown on a map attached to the Franchise Agreement. If a franchisee does not have a location when signing the Franchise Agreement, they will receive a non-exclusive site search area list.

Hyper Kidz will not establish or operate, nor license anyone else to do so, another Hyper Kidz Business in the franchisee's Designated Territory during the term of the Franchise Agreement. This territorial protection is contingent upon compliance with the Franchise Agreement, not on sales volume or market penetration. However, the franchise agreement does not grant an exclusive territory, so franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels.

If a Hyper Kidz franchisee wishes to relocate their business or if the business is damaged and cannot be repaired within 60 days, they must submit a written request with information about the proposed new location. Relocation is subject to certain requirements, including compliance with the Franchise Agreement, meeting the then-current location requirements, and being located within the Designated Territory. If relocation is approved, the franchisee will not have to pay a new initial franchise fee when signing the new Franchise Agreement, and there is no relocation fee.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.