What is the name of the company to which the Hyper Kidz lease is being assigned?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
failure of the Site to meet your expectations as to revenue, operational performance or other measures. You further acknowledge and agree that your acceptance of a Franchise for the operation of the Hyper Kidz Business at the Site is based on your own independent investigation of the suitability of the Site.
4.2 Approval of Lease
4.2.1 Upon our approval of a proposed site, you will attempt to obtain lawful possession of the approved Site through your direct purchase, lease or sublease. The lease or sublease for the Site shall be in a form satisfactory to us and: (a) provide for concurrent, written notice to us of your default under said lease or sublease; (b) provide for our right, in our sole discretion, to cure your default under said lease or sublease; (c) provide for your right to assign your interest under said lease or sublease to us without the lessor's or sublessor's consent; (d) authorize and require the lessor or sublessor to disclose to us upon our request sales and other information furnished to the lessor or sublessor by you; (e) provide that we shall have the right, in our sole discretion, upon termination of this Agreement or expiration of this Agreement, without the grant of a successor franchise, to assume said lease or sublease; (f) provide for the lessor's or sublessor's consent to your display of the Marks in accordance with our specifications, subject only to applicable law; (g) provide that it may not be materially modified without our prior written consent and that we will receive copies of such modifications when proposed and when executed; and (h) include an executed copy of the Collateral Assignment of Lease, which is attached hereto as Attachment 6, or a substantially similar form.
4.2.2 You will deliver to us for review a copy of the lease, sublease or purchase agreement for the Site. You agree that you will not execute a lease, sublease or purchase agreement without our prior written approval of its terms. If we do not disapprove a proposed lease, sublease or purchase agreement within fifteen (15) days after we receive it, it shall be deemed approved by us. You shall deliver a copy of the signed lease, sublease or purchase agreement to us within fifteen (15) days of its execution. You further agree that you will not execute or agree to any modification of the lease, sublease or purchase agreement which would affect our rights without our prior written approval.
4.3 Design Specifications
We will furnish to you "Design Specifications" which contain our requirements for design, decoration, layout, equipment, furniture, fixtures, color scheme, and signs for Hyper Kidz Businesses.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the franchisee has the right to assign their interest in the lease or sublease to Hyper Kidz without needing consent from the lessor or sublessor. Additionally, upon the termination or expiration of the franchise agreement, Hyper Kidz has the right to assume the lease or sublease for the site, at their sole discretion, if a successor franchise is not granted.
In the event that Hyper Kidz exercises its option to purchase the assets of the Hyper Kidz Business, the franchisee is required to deliver instruments transferring good and merchantable title to the assets, including the lease or sublease for the site, to Hyper Kidz or its assignee. This transfer must be free and clear of all liens and encumbrances, except those acceptable to Hyper Kidz or its assignee, with all sales and other transfer taxes paid by the franchisee.
If Hyper Kidz or its assignee chooses to exercise this option, they have the authority to appoint a manager to oversee the operation of the Hyper Kidz Business while the purchase is pending. Alternatively, Hyper Kidz may require the franchisee to close the Hyper Kidz Business during this period, without removing any assets from the site. The franchisee is obligated to maintain all required insurance policies until the closing date.
If the site is leased, Hyper Kidz agrees to make reasonable efforts to terminate the existing lease and enter into a new lease with the landlord on reasonable terms. However, if Hyper Kidz is unable to secure a new lease, they will indemnify and hold the franchisee harmless from any ongoing liability under the lease from the date Hyper Kidz assumes possession of the site.