What obligations do I have upon termination or non-renewal of the Multi Unit Development Agreement with Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Multi- | Summary | |
|---|---|---|---|
| (i) Multi-unit developer’s obligations on termination/non- renewal | Section 10 | You must stop selecting sites for Hyper Kidz Businesses, and you may not open any more Hyper Kidz Businesses |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 41–49)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, upon termination or non-renewal of the Multi-Unit Development Agreement, you must cease selecting sites for Hyper Kidz businesses and are prohibited from opening any additional Hyper Kidz locations. This obligation is detailed in Section 10 of the Multi-Unit Development Agreement.
This means that once the agreement ends, whether through termination or non-renewal, your rights to further expand the Hyper Kidz brand within your designated development area are immediately suspended. You cannot scout for new locations or establish new Hyper Kidz businesses.
This provision is fairly standard in multi-unit development agreements, as it protects Hyper Kidz's brand and territory after the agreement concludes. It ensures that the former developer does not continue to expand the brand independently, which could conflict with Hyper Kidz's strategic growth plans or the interests of other franchisees.