Are there any exceptions to the restrictions on what a Hyper Kidz franchisee may sell?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
, which is attached to our Franchise Agreement as Attachment 8.
Item 16: RESTRICTIONS ON WHAT THE FRANCHISE MAY SELL
You must sell or offer for sale all products and services we require and/or that we have expressly approved in writing, in the manner and style we require. You must not deviate from our standards and specifications without first obtaining our written consent. You must stop selling and offering for sale any products or services that we may disapprove in writing at any time. We have the right to change the types of products and services offered by you at your Hyper Kidz Business at any time, and there are no limits on our right to make those changes. You are prohibited from offering from your Franchised Business any products or services that we have not approved.
You must keep your Hyper Kidz Business very clean and maintain it in good repair and condition. You must make any additions, alterations, repairs and replacements, including repainting or replacement of obsolete signs, furnishings, equipment, and décor, as we may reasonably direct. You must not make any changes to the premises without obtaining our written consent before you make the changes. You must obtain and pay for any new or additional equipment, including computer hardware and software, fixtures, supplies and other products and materials that you must have to offer and sell new products and services from your Hyper Kidz Business.
We do not impose any other restrictions in the Franchise Agreement or otherwise, as to the goods or services that you may offer or sell or as to the customers to whom you may offer or sell, except as described in Item 12.
Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
**This table lists certain important provisions of the franchise and related agreements.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISE MAY SELL (FDD page 41)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees face specific restrictions on what they can sell. Hyper Kidz requires franchisees to sell all products and services that Hyper Kidz requires or has expressly approved in writing. Franchisees must adhere to Hyper Kidz's standards and specifications, and they cannot deviate without written consent. Hyper Kidz retains the right to change the types of products and services offered at any time, and franchisees must stop selling any products or services that Hyper Kidz disapproves of in writing. Franchisees are prohibited from offering any products or services that Hyper Kidz has not approved.
However, there are some exceptions and clarifications to these restrictions. Franchisees can sell Hyper Kidz's products and services to customers anywhere, provided those customers choose to use the franchisee's location. Franchisees are limited in their ability to engage in promotional activities or sales through the internet, with an exception for party bookings made through Hyper Kidz's website. Franchisees cannot make sales or deliver products to customers outside their Designated Territory unless there is no Hyper Kidz Business in operation in that area, and they cannot directly solicit customers outside of their Designated Territory. Additionally, franchisees are prohibited from selling any products at wholesale.
These restrictions and exceptions are important for prospective franchisees to understand, as they define the scope of permissible sales activities and protect Hyper Kidz's brand standards and distribution channels. Franchisees need to be aware of the approved products and services, the limitations on internet sales and marketing, and the territorial restrictions on customer solicitation and sales. Compliance with these restrictions is essential for maintaining a successful Hyper Kidz franchise and avoiding potential breaches of the franchise agreement.