Can Hyper Kidz operate or grant franchises for Hyper Kidz Businesses outside the Development Area, regardless of proximity to the franchisee's Hyper Kidz Businesses?

According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz retains specific rights regarding Hyper Kidz Businesses outside a franchisee's Development Area.

Hyper Kidz has the right to operate or franchise Hyper Kidz Businesses outside the Development Area under terms and conditions they deem appropriate. This is regardless of how close these businesses are to a franchisee's Hyper Kidz location. This means that while a franchisee is granted certain development rights within their defined area, Hyper Kidz maintains control over expansion and franchising activities outside of it.

This could create a situation where Hyper Kidz opens or franchises a location near a franchisee's territory, potentially leading to increased competition. The franchisee's agreement does not grant them any exclusivity or protection outside their Development Area.

Prospective franchisees should consider this lack of territorial protection outside their Development Area and how it might affect their long-term business prospects. It would be prudent to discuss Hyper Kidz's expansion strategy and potential for new locations near the Development Area with the franchisor.