Does Hyper Kidz have the right to exercise all reserved rights regardless of the proximity to my Hyper Kidz Outlet?

According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz retains specific rights that it can exercise regardless of how close the location is to a franchisee's Hyper Kidz Outlet.

Specifically, Hyper Kidz retains all rights regarding Hyper Kidz Businesses, the Marks, and the sale of approved products and services worldwide. This includes the right to operate Hyper Kidz Outlets or authorize others to do so outside the franchisee's designated territory, under any terms and conditions Hyper Kidz deems appropriate. The proximity of these other outlets to the franchisee's location does not limit Hyper Kidz's right to operate or franchise them.

The FDD explicitly states that Hyper Kidz has the "unbridled right" to exercise all reserved rights, irrespective of the proximity to the franchisee's Hyper Kidz Outlet. This means that Hyper Kidz is not restricted in its ability to offer products, services, or grant franchises, even if it directly impacts a franchisee's business due to nearby competition.

This clause emphasizes that while franchisees are granted a designated territory, Hyper Kidz maintains significant control over its brand and business operations, and can act without regard to a franchisee's location. Franchisees should be aware of this provision, as it means Hyper Kidz could potentially authorize competing outlets near their location, impacting their revenue and market share.