Will the specific site for a Hyper Kidz franchise be identified in the Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
it E. The Operations Manual includes approximately 96 pages.
Item 12: TERRITORY
Franchise Agreement
Your Franchise Agreement will specify the site that will be the Approved Location for your Hyper Kidz Business. Your Franchise Agreement will also specify a Designated Territory, which will be a minimum of 65,000 kids ages 13 & under within a 15-mile radius (Driving Distance), whichever comes first around the Approved Location. Your Designated Territory may be described in terms of street, municipal or other boundaries, and may be depicted on a map that is attached to your Franchise Agreement. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area list as Attachment 3.
During the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, a Hyper Kidz Business in your Designated Territory, except as may be permitted under the Franchise Agreement and those exceptions are described below. Your territorial protection does not depend on your achieving a certain sales volume, market penetration, or other factor, other than compliance with the Franchise Agreement.
You will not receive an exclusive territory. You may face competition from other franchisees, 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. If we permit you to relocate, you will not pay a new initial franchise fee when you sign the new Franchise Agreement. We do not charge a relocation fee.
Source: Item 12 — TERRITORY (FDD pages 33–36)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the Franchise Agreement will specify the Approved Location for the franchisee's Hyper Kidz Business. The agreement will also define a Designated Territory, which is a minimum of 65,000 kids ages 13 and under within a 15-mile radius (Driving Distance) around the Approved Location, whichever comes first. This territory may be described using street, municipal, or other boundaries and may be shown on a map attached to the Franchise Agreement. If a location is not yet secured when signing the Franchise Agreement, the franchisee will receive a non-exclusive site search area list as Attachment 3.
During the term of the Franchise Agreement, Hyper Kidz will not establish or operate, nor license anyone else to do so, a Hyper Kidz Business within the franchisee's Designated Territory, with some exceptions as detailed in the agreement. The franchisee's territorial protection is contingent upon compliance with the Franchise Agreement, not on achieving specific sales volumes or market penetration. However, the FDD states that the franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by Hyper Kidz.
If a Hyper Kidz franchisee wishes to relocate their business, or if the business is damaged or destroyed and cannot be repaired within 60 days, they must submit a written request with the required materials to Hyper Kidz for consideration. The new location must meet Hyper Kidz's current requirements, be within the Designated Territory, and the franchisee must sign the then-current form of the Franchise Agreement. If relocation is approved, the franchisee will not be required to pay a new initial franchise fee when signing the new Franchise Agreement, and Hyper Kidz does not charge a relocation fee.