What qualifications must a person or entity meet to be granted the right to own and operate a Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
(a) the transferee must have sufficient business experience, aptitude and financial resources to operate the Hyper Kidz Business and perform the obligations of the transferor under this Agreement, and neither the transferee nor its Principals may be engaged in or intend to engage in a Competitive Business;
(c) the transferee and its personnel who will have access to the Confidential Information must have signed the Confidentiality and Non-Competition Agreement and have completed our training program to our satisfaction;
(d) the transferee and its Principals, at our option, must agree in a manner satisfactory to us to be bound by all terms and conditions of this Agreement for the remainder of its term or execute our then-current form of franchise agreement and such ancillary documents, including guarantees, as are then customarily used by us in the grant of franchises for Hyper Kidz Businesses, modified as necessary to provide for the same Royalty Fees required hereunder and a term equal to the remaining term of this Agreement;
(e) you or the transferee must have paid us a transfer fee of Fifteen Thousand Dollars ($15,000) to cover our reasonable costs in effecting the transfer and in providing initial assistance to transferee;
11.7.1 We recommend, but do not require, that you or one of your Principals (if you are a corporate entity) actively participate in the operation of your Hyper Kidz Business.
If you or one of your Principals will not be involved in the day-to-day operation of your Hyper Kidz Business, your general manager must devote its full time and best efforts to the operation of your Hyper Kidz Business and we may communicate with and rely on the decisions made by your general manager.
We must approve of your general manager and your general manager must successfully complete our initial training program.
If you do not participate in the daily operation of the Hyper Kidz Business, you or one of your Principals must satisfactorily complete our initial training program, and you must make sure that the Hyper Kidz Business is operated in compliance with this Agreement, the Manual, and the System.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz grants franchises to qualified persons or entities who meet their qualifications and are willing to undertake the investment and effort to operate a Hyper Kidz Business at an approved site, using the Hyper Kidz system and marks.
If a franchisee plans to transfer their franchise to another party, the transferee must have sufficient business experience, aptitude, and financial resources to operate the Hyper Kidz Business and perform the obligations of the transferor under the Franchise Agreement. Neither the transferee nor its Principals may be engaged in or intend to engage in a Competitive Business. The transferee and its personnel who will have access to confidential information must sign a Confidentiality and Non-Competition Agreement and complete the Hyper Kidz training program to Hyper Kidz's satisfaction. The transferee and its Principals, at Hyper Kidz's option, must agree to be bound by all terms and conditions of the Franchise Agreement for the remainder of its term or execute Hyper Kidz's then-current form of franchise agreement. The franchisee or the transferee must pay Hyper Kidz a transfer fee of $15,000 to cover Hyper Kidz's costs in effecting the transfer and providing initial assistance to the transferee. Hyper Kidz must approve the material terms and conditions of the transfer, including the price and terms of payment.
Hyper Kidz recommends, but does not require, that the franchisee or one of its Principals actively participate in the operation of the Hyper Kidz Business. If neither the franchisee nor one of its Principals will be involved in the day-to-day operation of the Hyper Kidz Business, the general manager must devote full time and best efforts to the operation of the Hyper Kidz Business, and Hyper Kidz must approve of the general manager. The general manager must successfully complete Hyper Kidz's initial training program. If the franchisee does not participate in the daily operation of the Hyper Kidz Business, the franchisee or one of its Principals must satisfactorily complete Hyper Kidz's initial training program and ensure that the Hyper Kidz Business is operated in compliance with the Franchise Agreement, the Operations Manual, and the System.