Must a relocating Hyper Kidz franchisee sign the then-current form of the Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
sees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
If, during the term of the Franchise Agreement, you wish to relocate your Hyper Kidz Business, or if your Hyper Kidz Business is damaged or destroyed and cannot be repaired within 60 days, you must submit to us in writing the materials we require to consider your request, including information concerning
the proposed new location for your Hyper Kidz Business. You must also meet certain other requirements, such as being in compliance with the Franchise Agreement, the location meets our then-current requirements for a Hyper Kidz Business and is located within your Designated Territory, and you must sign our then-current form of Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee wishing to relocate their Hyper Kidz Business must adhere to specific requirements, including signing the then-current form of the Franchise Agreement. This stipulation applies if a franchisee wants to move their business during the term of the Franchise Agreement or if the existing location is damaged or destroyed and cannot be repaired within 60 days.
In practical terms, this means that if a Hyper Kidz franchisee decides to relocate, they will not be operating under the same agreement they initially signed. The new agreement could have different terms, conditions, fees, and obligations that the franchisee must comply with. However, Hyper Kidz does not charge a relocation fee, and the franchisee will not pay a new initial franchise fee when signing the new Franchise Agreement.
This requirement ensures that all Hyper Kidz locations operate under the most up-to-date standards and legal framework established by the franchisor. While it provides consistency across the brand, franchisees need to carefully review the new agreement to understand any changes and how they might impact their business operations. It is a common practice in franchising to update agreements periodically, reflecting changes in the market, legal requirements, and the franchisor's business model.