What is Hyper Kidz's obligation regarding site selection review, and what is the franchisee's responsibility to initiate this review?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
We shall, at our expense, provide the following services:
- 8.1 Review your site selection for conformity to our standards and criteria for selection and acquisition of sites upon our receipt of your written request for approval thereof.
- 8.2 Provide you with standard specifications and layouts for the interior and exterior design, improvements, equipment, furnishings, décor and signs identified with the Hyper Kidz Businesses as we make available to all multi-unit developers and franchisees from time to time.
- 8.3 Review of your site plan and final build-out plans and specifications for conformity to the construction standards and specifications of the System, upon our receipt of your written request for approval thereof.
- 8.4 Provide such other resources and assistance as may hereafter be developed and offered by us to our other multi-unit developers in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz will review a franchisee's site selection to ensure it meets the company's standards and criteria. This service is provided at no expense to the franchisee. However, Hyper Kidz's obligation to review the site is contingent upon receiving a written request for approval from the franchisee.
This means that the franchisee is responsible for identifying a potential site and submitting a formal, written request to Hyper Kidz for their evaluation. The FDD specifies that Hyper Kidz must receive this written request before they are obligated to begin the review process. This places the onus on the franchisee to take the initiative in the site selection process and to communicate with Hyper Kidz in a clear and documented manner.
In addition to site selection, Hyper Kidz also offers to review the franchisee's site plan and final build-out plans and specifications to ensure they conform to the construction standards of the Hyper Kidz system. Similar to the site selection review, this service is also contingent upon Hyper Kidz receiving a written request for approval from the franchisee. Therefore, the franchisee must proactively seek Hyper Kidz's approval at various stages of development to ensure compliance and avoid potential issues.