factual

What is the purpose of the agreement between the franchisee and Boomerang Franchise, LLC, the franchisor of Hyper Kidz?

Hyper_Kidz Franchise · 2024 FDD

Answer from 2024 FDD Document

21029 ("we", "us" or "our"), and a(n) , with its principal place of business located at and 's principals , and individual residing at , and , an individual residing at And Principal(s) shall be collectively referred to in this agreement as the "Franchisee". ("Principal(s)").

ARTICLE 1: INTRODUCTION

  • 1.1 We and our Affiliates have developed and continue to develop methods of operating an interactive, indoor playground for kids aged 6 months to 13 years that encourages healthy and active social play ("Approved Products and Services"). Such a business is defined below as a "Hyper Kidz Business". Hyper Kidz Businesses operate at locations that feature the "System", which consists of distinctive signage, interior and exterior design, décor and color scheme; uniform standards, specifications, and procedures for operations; quality and uniformity of products and services offered; inventory, management and financial control procedures; training and assistance; and advertising and promotional programs, all of which we may modify from time to time.
  • 1.2 We grant to certain qualified persons or entities, and who meet our qualifications and who are willing to undertake the investment and effort, the right to own and operate a Hyper Kidz Business at the Site using the System and the Marks. Pursuant to this Agreement, we will grant rights to you to own and operate a Hyper Kidz Business at the Site and to operate the Hyper Kidz Business according to the terms of this Agreement.
  • 1.3 Certain terms that are capitalized in this Agreement are defined in Article 2 or at the places in this Agreement where they first appear.

ARTICLE 2: DEFINITIONS

  • 2.1 For purposes of this Agreement, the terms listed below have the meanings that follow them. Other terms used in this Agreement are defined and construed in the context in which they occur.
  • 2.1.1 "Affiliate" Any person, entity or company that directly or indirectly owns or controls a party, that is directly or indirectly owned or controlled by a party, or that is under common control with a party. For purposes of this definition, "control" means the power to direct or cause the direction of the management and policies of an entity.
  • 2.1.2 "Competitive Business" A business other than a Hyper Kidz Business that: (a) features the Approved Products and Services or substantially similar products and services; or (b) grants or has granted franchises or licenses or establishes or has established joint ventures for the development and/or operation of a business described in the foregoing clause (a).

  • 2.1.3 "Domain Name" The internet domain name selected or used in connection with a Hyper Kidz Business and any other domain names that may be utilized by us or which we may authorize you to use.
  • 2.1.4 "Hyper Kidz Business" A business that: (a) offers the Approved Products and Services for sale as well as certain complementary products and services; (b) meets our standards and specifications; (c) operates using the Marks and the System; and (d) is either operated by us or our Affiliates or pursuant to a valid license from us.
  • 2.1.5 "Marks" The trademarks, service marks, logos, other commercial symbols and any Domain Name which we authorize you to use to identify the services and/or products offered by your Hyper Kidz Business including the mark "Hyper Kidz" and the "Trade Dress";

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2024 FDD)

According to Hyper Kidz's 2024 Franchise Disclosure Document, the franchise agreement between Boomerang Franchise LLC and the franchisee grants the franchisee the right to own and operate a Hyper Kidz Business at a specific location using the Hyper Kidz system and marks. The Hyper Kidz system includes distinctive signage, interior and exterior design, operational procedures, product quality standards, inventory management, financial controls, training, and advertising programs. Boomerang Franchise LLC may modify the system from time to time.

The agreement allows qualified individuals or entities who meet Hyper Kidz's standards and are willing to invest the necessary resources to operate a Hyper Kidz Business. The franchisee is granted the right to operate the business at a single location within a designated territory. Hyper Kidz agrees not to operate or authorize other franchisees to operate a Hyper Kidz outlet in the franchisee's territory during the agreement term, provided the franchisee is not in default.

Hyper Kidz retains all rights regarding Hyper Kidz Businesses, the marks, and the sale of approved products and services worldwide. The franchisee must faithfully perform their obligations, promote the Hyper Kidz Business, and not operate from any location other than the designated site. The franchise is nonexclusive but grants a protected territory to the franchisee's Hyper Kidz Business.

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.