When does the Hyper Kidz Multi-Unit Development Agreement expire?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
After the last Hyper Kidz Business under the minimum performance schedule has opened, your Multi-Unit Development Agreement will expire. At this time if we believe that it is desirable to establish additional Hyper Kidz Businesses within the Development Area, and if you complied with the terms of your Multi-Unit Development Agreement and are in compliance with your Franchise Agreements, we will offer you the right to develop these additional Hyper Kidz Businesses. You must exercise this option, in full, within 60 days after our notice to you. If you do not exercise or you decline this right of first refusal, we shall have the right to sell these development rights to another multi-unit developer or to develop the Hyper Kidz Businesses ourselves.
To maintain your rights under the Multi-Unit Development Agreement you must have open and in operation the cumulative number of Hyper Kidz Businesses stated on the minimum performance schedule by the dates agreed upon in the minimum performance schedule. Failure to do so will be grounds for either a loss of territorial exclusivity or a termination of the Multi-Unit Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Multi-Unit Development Agreement expires when the last Hyper Kidz Business to be developed within the Development Area opens for business. After the last Hyper Kidz Business under the minimum performance schedule has opened, the Multi-Unit Development Agreement will expire.
This means that the term of the agreement is directly tied to the franchisee's ability to open the number of Hyper Kidz locations specified in the minimum performance schedule. The franchisee's exclusive rights to the Development Area also terminate upon the expiration of the Multi-Unit Development Agreement. After the agreement expires, Hyper Kidz and its affiliates have the right to operate or grant development rights and franchises to others within the Development Area, subject to the franchisee's existing territorial rights under their Franchise Agreements and their right of first refusal to develop additional locations.
To maintain rights under the Multi-Unit Development Agreement, the franchisee must have the cumulative number of Hyper Kidz Businesses open and operating by the dates agreed upon in the minimum performance schedule. Failure to meet this schedule can result in a loss of territorial exclusivity or termination of the agreement. However, if the franchisee complies with the terms of the Multi-Unit Development Agreement and the Franchise Agreements, Hyper Kidz will offer the franchisee the right to develop additional Hyper Kidz Businesses within the Development Area. The franchisee must exercise this option within 60 days of notice.