What standards must the proposed transferee and its Principals meet to be approved as a Hyper Kidz franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
(b) the proposed transferee and its Principals must be individuals of good moral character and otherwise meet our then-applicable standards for Hyper Kidz Business franchisees, and if the proposed transferee, its owners or Affiliates have any other franchise agreements or development agreements with us, they are in full compliance with any such agreements and comply with clause (f) of Section 16.3.2;
(a) the transferee must have sufficient business experience, aptitude and financial resources to operate the Hyper Kidz Business and perform the obligations of the transferor under this Agreement, and neither the transferee nor its Principals may be engaged in or intend to engage in a Competitive Business;
(c) the transferee and its personnel who will have access to the Confidential Information must have signed the Confidentiality and Non-Competition Agreement and have completed our training program to our satisfaction;
(d) the transferee and its Principals, at our option, must agree in a manner satisfactory to us to be bound by all terms and conditions of this Agreement for the remainder of its term or execute our then-current form of franchise agreement and such ancillary documents, including guarantees, as are then customarily used by us in the grant of franchises for Hyper Kidz Businesses, modified as necessary to provide for the same Royalty Fees required hereunder and a term equal to the remaining term of this Agreement;
(i) the proposed transferee must furnish the information and references we require of potential franchisees and must present himself/herself at his/her own expense for a personal interview at our office;
(l) the transferee, at its expense, must upgrade the Hyper Kidz Business to conform to the then-current standards and specifications for new franchises;
(m) the transfer must be made in compliance with all applicable laws.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a proposed transferee and their Principals must meet several standards to be approved as a Hyper Kidz franchisee. The transferee and its Principals must be of good moral character and meet Hyper Kidz's then-applicable standards for franchisees. They cannot be engaged in, or intend to engage in, a Competitive Business. If the transferee, its owners, or affiliates have any other franchise or development agreements with Hyper Kidz, they must be in full compliance with those agreements.
The transferee must have sufficient business experience, aptitude, and financial resources to operate the Hyper Kidz Business and fulfill the transferor's obligations under the franchise agreement. The transferee and its personnel who will access confidential information must sign a Confidentiality and Non-Competition Agreement and complete Hyper Kidz's training program to their satisfaction. At Hyper Kidz's option, the transferee and its Principals must agree to be bound by all terms of the existing franchise agreement or execute Hyper Kidz's then-current form of franchise agreement.
The proposed transferee must furnish the information and references Hyper Kidz requires of potential franchisees and attend a personal interview at their own expense at Hyper Kidz's office. The transferee, at its expense, must upgrade the Hyper Kidz Business to conform to the then-current standards and specifications for new franchises. The transfer must also comply with all applicable laws. These conditions ensure that the new franchisee is well-qualified and committed to maintaining Hyper Kidz's standards and protecting its interests.