Does Hyper Kidz have a right of first refusal to acquire a Hyper Kidz multi-unit developer's business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Multi- | Summary | |
|---|---|---|---|
| Unit Development Agreement | |||
| (n) Franchisor’s right of first refusal to acquire multi-unit developer’s business | Section 11 | We have the right to match the offer to purchase your business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 41–49)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz does have a right of first refusal to acquire a multi-unit developer's business. This means that if a multi-unit developer receives an offer to purchase their Hyper Kidz business, they must first give Hyper Kidz the opportunity to match that offer.
This right is detailed within Section 11 of the Multi-Unit Development Agreement. The FDD specifies that Hyper Kidz has the right to match any offer made to purchase the multi-unit developer's business.
For a prospective franchisee, this means that selling their Hyper Kidz multi-unit development business may require an extra step. Before finalizing a sale to a third party, Hyper Kidz must be given the chance to buy the business on the same terms. This could potentially delay a sale or influence the final sale price and terms, depending on whether Hyper Kidz chooses to exercise its right of first refusal.