What are the requirements for the site I propose for my Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
the Franchise Agreement. (Franchise Agreement, Section 6.5.)
Site Selection
You must select the site for your Hyper Kidz Business, and you must obtain our written acceptance of any proposed site in accordance with our procedures. Within 180 days after you sign the Franchise Agreement, you must submit to us the information and materials we may reasonably require for your proposed site, including demographic, commercial and other information, and photographs. We will consider the site based on demographic characteristics of the proposed site, traffic patterns, parking, the predominant character of the neighborhood, competition from other businesses providing similar services within the area (including other Hyper Kidz Businesses), the number of households, income levels, population, the purchase price or lease terms for the proposed site and other commercial characteristics, the size of the premises, appearance, and other physical characteristics of the proposed site. (Franchise Agreement – 4.1)
We will have 30 days after we receive this information and materials from you to approve or disapprove the proposed site as the location for your Hyper Kidz Business. If we do not provide our specific approval of a proposed site, the site is deemed not approved. Our approval only means that the site meets our requirements for a Hyper Kidz Business. We also reserve the right to approve your lease. We will not lease a site and then sublease it to you. (Franchise Agreement 4.1.2)
If you do not locate a suitable site within 180 days after you sign the Franchise Agreement, we will provide you with an additional 30 days to locate a suitable site. If you do not locate a suitable site within this additional 30-day period, we may provide you with an additional extension, in our discretion, or we may terminate the Franchise Agreement. (Franchise Agreement 4.1.2)
Opening
We estimate that the time from when the Franchise Agreement is signed to the opening of the Hyper Kidz Business will be approximately 9 to 12 months. This time may be shorter or longer depending on the time necessary to obtain an accepted site, to obtain financing, to obtain the permits and licenses for the construction and operation of the Hyper Kidz Business, to complete construction or remodeling as it may be affected by weather conditions, shortages, delivery schedules and other similar factors, to complete the interior and exterior of the Hyper Kidz Business, including decorating, purchasing and installing fixtures, equipment and signs, and to complete preparation for operating the Hyper Kidz Business, including
purchasing inventory and supplies, and completing our initial training program. You must open your Hyper Kidz Business and begin business not later than 12 months after you sign the Franchise Agreement. If you are unable to open your Hyper Kidz Business within the required timeframe, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are responsible for selecting a site for their Hyper Kidz Business, but the franchisor must provide written acceptance of the proposed site. Within 180 days of signing the Franchise Agreement, the franchisee must submit all required information and materials for the proposed site. This includes demographic, commercial, and other information, as well as photographs. If a suitable site is not located within this initial 180-day period, Hyper Kidz may grant an additional 30 days to find a site. Failure to find a suitable site within this extended period may lead to termination of the Franchise Agreement at Hyper Kidz's discretion.
Hyper Kidz will evaluate the proposed site based on several factors, including demographic characteristics, traffic patterns, parking availability, the nature of the neighborhood, competition from similar businesses (including other Hyper Kidz locations), the number of households, income levels, population density, purchase price or lease terms, the size of the premises, its appearance, and other physical characteristics. Hyper Kidz has 30 days to approve or disapprove the site after receiving the necessary information. If specific approval is not provided within this timeframe, the site is considered not approved.
Hyper Kidz's approval indicates that the site meets their requirements for a Hyper Kidz Business. Hyper Kidz also reserves the right to approve the lease agreement. The FDD states that Hyper Kidz will not lease a site and then sublease it to the franchisee. Once Hyper Kidz approves the location for the franchise, they will designate the boundaries of the franchisee's designated territory. Before a Hyper Kidz Business can open, the franchisor must furnish design specifications, including requirements for design, decoration, layout, equipment, furniture, fixtures, color scheme, signs, and other operating materials.