What is the process if a Hyper Kidz franchisee disputes a violation of a law?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.1.6 If you suffer a violation of any law, ordinance, rule or regulation of a governmental agency in connection with the operation of the business, and permit the same to go uncorrected after notification thereof, unless there is a bona fide dispute as to the violation or legality of such law, ordinance, rule or regulation, and you promptly resort to courts or forums of appropriate jurisdiction to contest such violation or legality.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee faces a violation of any law, ordinance, rule, or regulation related to their business operations, they have the right to dispute it. However, to avoid potential default and termination of their Franchise Agreement, the franchisee must meet specific conditions.
First, the franchisee must have a "bona fide dispute" regarding the violation or the legality of the law, ordinance, rule, or regulation in question. This means the dispute must be genuine and based on a reasonable belief that the violation is not valid or the law itself is questionable. Second, the franchisee must promptly take the matter to the appropriate courts or legal forums to formally contest the violation or legality. This demonstrates a commitment to resolving the issue through proper legal channels rather than simply ignoring the alleged violation.
By adhering to these steps—having a genuine dispute and promptly pursuing legal action—the Hyper Kidz franchisee can avoid immediate termination of their agreement, allowing them to continue operating their business while the legal matter is being resolved. This clause protects franchisees from potentially unfair or incorrect accusations, provided they actively engage in a legal defense.