factual

What is the process for a Hyper Kidz franchisee to make material alterations to the Site or the appearance of the Hyper Kidz Business?

Hyper_Kidz Franchise · 2024 FDD

Answer from 2024 FDD Document

ny fees charged by your bank. If you incur three (3) insufficient funds fees within any twelve (12) month period, we may terminate this Agreement without providing you the opportunity to cure the default.

10.10 Payment of Additional Fees

You shall pay such other fees or amounts described in this Agreement.

ARTICLE 11: HYPER KIDZ BUSINESS IMAGE AND OPERATION

11.1 Condition and Appearance of the Hyper Kidz Business

11.1.1 You agree that: (a) neither the Hyper Kidz Business nor the Site will be used for any purpose other than the operation of a Hyper Kidz Business in compliance with this Agreement; (b) you will maintain the condition and appearance of the Hyper Kidz Business, its equipment, fixtures, signs, and the Site in accordance with our specifications and standards and consistent with the image of a Hyper Kidz Business; and (c) you will perform such maintenance with respect to the décor, equipment, fixtures, and signs of the Hyper Kidz Business and the Site as may be required from time to time to maintain good condition, appearance, and efficient operation including, without limitation: (i) thorough cleaning, exterminating, repainting and redecorating of the interior and exterior of the Site on a daily basis or at reasonable intervals, as applicable; (ii) interior and exterior repair of the Site; (iii) repair or replacement of damaged, worn out or obsolete equipment, fixtures, and signs, provided we will not require you to replace any obsolete equipment unless we have initiated a program to replace such equipment as it becomes necessary for all Hyper Kidz Businesses in the System; (iv) you will not make any material alterations to

the Site or to the appearance of the Hyper Kidz Business as originally developed without our prior approval in writing; (v) subject to our approval of plans, layouts and designs, you will remodel, expand, redecorate, reequip and refurnish the Site and the Hyper Kidz Business when required by us, but no more often than once every five (5) years, to reflect changes in the operation of Hyper Kidz Businesses prescribed by us and required of new Hyper Kidz Business franchisees. You shall have a reasonable time period remaining under this Agreement to amortize the costs of such improvements. Notwithstanding the provisions above, we can require you to change and/or upgrade equipment at any time to comply with new specifications and standards; and (vi) you will place or display at the interior and exterior of Site only such signs, emblems, lettering, logos, and display and advertising materials that are from time to time approved by us.

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2024 FDD)

According to the 2024 Hyper Kidz Franchise Disclosure Document, franchisees are prohibited from making any material alterations to the Site or the appearance of the Hyper Kidz Business as originally developed without prior written approval from Hyper Kidz.

Hyper Kidz retains control over the brand's image and consistency. However, Hyper Kidz can require franchisees to remodel, expand, redecorate, reequip, and refurnish the Site and the Hyper Kidz Business, subject to Hyper Kidz's approval of plans, layouts, and designs. These changes will reflect updates in the operation of Hyper Kidz Businesses as prescribed by Hyper Kidz and required of new Hyper Kidz Business franchisees. These changes will occur no more than once every five years. Franchisees will have a reasonable time period remaining under the Franchise Agreement to amortize the costs of such improvements. Hyper Kidz can also require franchisees to change and/or upgrade equipment at any time to comply with new specifications and standards.

Franchisees must place or display at the interior and exterior of the Site only such signs, emblems, lettering, logos, and display and advertising materials that are approved by Hyper Kidz. If a franchisee fails to maintain the condition and appearance of the Hyper Kidz Business as required, Hyper Kidz may, upon not less than ten days' notice, arrange for the necessary cleaning, repair, remodeling, or replacement of fixtures and signs at the franchisee's expense. In cases of health or sanitation hazards or other public endangerment, Hyper Kidz may take immediate action without notice.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.