Does Hyper Kidz need to provide notice before inspecting a Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
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You shall preserve for three (3) years all business, accounting, tax, inventory, financial, legal, personnel, operations and other records relating to the Hyper Kidz Business and to you. We shall have the right with or without prior notice to inspect, audit and copy such records during business hours. You shall make such records available for examination at the Hyper Kidz Business.
ARTICLE 14: INSPECTIONS AND AUDITS
14.1 Our Right to Inspect the Hyper Kidz Business
To determine whether you and the Hyper Kidz Business are complying with this Agreement and with specifications, standards and operating procedures we prescribe for the operation of Hyper Kidz Businesses, we or our agents or representatives shall have the right at any reasonable time before or after the Hyper Kidz Business opens, and with or without notice to you, to: (a) inspect the Site and the equipment,
fixtures, signs, food, inventory and supplies of the Hyper Kidz Business; (b) observe, photograph and video tape the operations of the Hyper Kidz Business for such consecutive or intermittent periods as we deem necessary; (c) remove samples of any Products without payment therefor for testing and analysis; (d) interview personnel of the Hyper Kidz Business; (e) interview customers of the Hyper Kidz Business; and (f) inspect and copy any books, records and documents relating to the operation of the Hyper Kidz Business. You agree to cooperate fully with us and/or our agents in connection with any such inspections, observations, photographing and videotaping, Product removal and interviews. You shall present to your customers such evaluation forms as we periodically prescribe and shall participate and/or request your customers to participate in any surveys performed by us or on our behalf.
You shall install and maintain the communications equipment, software and highspeed internet access necessary to permit us to electronically access your computer system, thereby permitting us to inspect and monitor information concerning your inventory, sales of the Hyper Kidz Business, Gross Sales, and such other information as may be contained or stored in the computer system. We shall have electronic access as provided herein at such times and in such manner as we shall from time to time specify.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz, or its agents or representatives, have the right to inspect a Hyper Kidz Business at any reasonable time, either before or after the business opens. This inspection can occur with or without prior notice to the franchisee.
The scope of these inspections is broad, including the right to inspect the site, equipment, fixtures, signs, food, inventory, and supplies. Hyper Kidz can also observe, photograph, and video tape the business operations, remove product samples for testing without payment, interview personnel and customers, and inspect and copy any relevant books, records, and documents. Franchisees are required to fully cooperate with Hyper Kidz during these inspections.
Hyper Kidz also has the right to audit the business records of a Hyper Kidz Business at any time during business hours, with or without notice. This includes inspecting business records, bookkeeping and accounting records, tax records, and the books and records of any entity holding the franchise. Hyper Kidz can also access the franchisee's computer system electronically to monitor inventory, sales, and other information.