Does the Hyper Kidz Multi-Unit Development Agreement grant the right to use the Marks or System?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.4 This Agreement is not a Franchise Agreement and does not grant to you any right to use the Marks or System.
- 1.5 You shall have no right under this Agreement to franchise others under the Marks or System.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Multi-Unit Development Agreement does not grant the right to use the Hyper Kidz Marks or System. Instead, the agreement solely allows the execution of Franchise Agreements for developing Hyper Kidz businesses within a specific Development Area.
A Hyper Kidz developer must enter into a separate Franchise Agreement to obtain the license to use the Marks and System for each individual business. This license is granted upon the execution of each Franchise Agreement by both the developer and Hyper Kidz, and it is subject to the terms outlined in that specific Franchise Agreement.
This distinction is important for prospective multi-unit developers because the Development Agreement primarily secures the rights to develop within a specific area, but it does not automatically grant the rights to operate under the Hyper Kidz brand. The developer needs to fulfill the obligations of the Development Agreement to then be able to execute individual Franchise Agreements, which in turn grant the rights to use the Marks and System for each location.