What terms and conditions of the transfer must Hyper Kidz approve?

According to Hyper Kidz's 2024 Franchise Disclosure Document, several terms and conditions of a franchise transfer require the franchisor's approval. Hyper Kidz must approve the material terms and conditions of the transfer, explicitly including the price and payment terms. This ensures that these financial aspects do not negatively impact Hyper Kidz's rights and interests under the franchise agreement. The franchisee must also provide Hyper Kidz with a copy of the executed contract of assignment.

Hyper Kidz also considers other factors when evaluating a potential transfer. The transferee must demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the Hyper Kidz Business and fulfill the transferor's obligations under the existing agreement. Additionally, neither the transferee nor their Principals can be involved in or planning to engage in a Competitive Business.

Furthermore, the transferee and their personnel who will access confidential information must sign a Confidentiality and Non-Competition Agreement and complete Hyper Kidz's training program to the franchisor's satisfaction. The transferee and their Principals, at Hyper Kidz's discretion, must agree to be bound by all terms and conditions of the existing agreement for its remaining term or execute Hyper Kidz's current franchise agreement form. A transfer fee of $15,000 must be paid to cover Hyper Kidz's costs associated with the transfer and providing initial assistance to the transferee. These stipulations are in place to protect the Hyper Kidz brand and ensure the continued success of the franchise system under new ownership.