Does Hyper Kidz require automobile insurance for owned, non-owned, or hired vehicles?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to maintain automobile insurance for any owned, non-owned, or hired vehicles used in connection with the Hyper Kidz business. This insurance must also include uninsured/underinsured motorist coverage, as required by the state in which the Hyper Kidz Business is located.

This requirement ensures that the franchisee is protected against liability and financial loss in the event of an accident involving vehicles used for the business. It also protects Hyper Kidz from potential liability arising from vehicle-related incidents. The specific coverage amounts and terms will be dictated by state law, so franchisees must ensure they meet the minimum requirements of their state.

It is important for prospective Hyper Kidz franchisees to understand the costs associated with maintaining this insurance, as it will impact their overall operating expenses. Franchisees should consult with insurance professionals to obtain quotes and ensure they have adequate coverage to meet both the franchisor's requirements and their own risk management needs. Failing to maintain the required insurance coverage can result in Hyper Kidz obtaining the insurance on the franchisee's behalf, with the franchisee responsible for all costs and a 10% administrative fee, or even termination of the franchise agreement.