How is the Hyper Kidz territory determined?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| o Territory (insert map and/or define by zip codes): BE DETERMINED AND INSERTED AFTER A IDENTIFIED BY FRANCHISEE AND APPROVED BY FRANCHISOR, IN ACCORDANCE WITH SECTION 8.1 OF THE FRANCHISE AGREEMENT, IN THE | **TERRITORY AND ADDRESS TO HYPER KIDZ PREMISES IS |
|---|---|
| SITE SEARCH AREA OF |
This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within the Territory. Subject to Section 3.2 below, Franchisor agrees that during the Term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Hyper Kidz outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Hyper Kidz franchises bordering and adjacent to the Territory. Except as set forth in this Agreement, Franchisee is prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution as more fully specified herein. You expressly acknowledge that this Franchise is nonexclusive, but that this Agreement does grant you a protected area or territory for your Hyper Kidz Business referred to herein as your "Designated Territory". Your Designated Territory is described in Attachment 3 hereof.
We retain all rights with respect to Hyper Kidz Businesses, the Marks and the sale of Approved Products and Services and any other products and services anywhere in the world including, without limitation:
(b) to operate and to grant others the right to operate Hyper Kidz Outlets located outside the Designated Territory under any terms and conditions we deem appropriate and regardless of proximity to your Hyper Kidz Outlet;
(a) to produce, offer and sell and to grant others the right to produce, offer and sell the Products offered at Hyper Kidz Outlets and any other goods through similar or dissimilar channels of distribution, both within and outside the Designated Territory, under trade and service marks other than the Marks and under any terms and conditions we deem appropriate;
(c) the right to acquire and operate a business operating one or more child development Outlets located or operating in your Designated Territory; provided, however, that if we do acquire this business any facilities located or operating within your Designated Territory will not operate using the Marks.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee is granted the right to operate their franchised business at a single location within a designated territory. This territory is not exclusive, but Hyper Kidz agrees not to operate or authorize other franchisees to operate a Hyper Kidz outlet within that territory, using the same marks, as long as the franchisee is not in default of the agreement. Hyper Kidz retains the right to open or franchise outlets bordering and adjacent to the franchisee's territory. The franchisee is prohibited from serving or soliciting customers outside of their designated territory. The specific details of the territory are described in Attachment 3 of the Franchise Agreement.
The territory and address of the Hyper Kidz premises are determined and inserted after being identified by the franchisee and approved by Hyper Kidz, in accordance with Section 8.1 of the Franchise Agreement, within a site search area.
Hyper Kidz retains rights to operate and grant others the right to operate Hyper Kidz outlets outside the designated territory, regardless of proximity to the franchisee's location. They also retain the right to produce, offer, and sell products offered at Hyper Kidz outlets through other channels of distribution, both within and outside the designated territory, under different marks. Furthermore, Hyper Kidz can acquire and operate a business operating one or more child development outlets located or operating in the franchisee’s designated territory, provided that these facilities will not operate using the Hyper Kidz marks.