Is there a Statement of Ownership Interests in Franchisee included as an attachment to the Hyper Kidz Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| ARTICLE 1: INTRODUCTION1 | |
|---|---|
| ARTICLE 2: DEFINITIONS1 ARTICLE 3: GRANT OF FRANCHISE2 ARTICLE 4: DEVELOPMENT AND OPENING OF THE HYPER KIDZ BUSINESS 4 ARTICLE 5: TRAINING AND GUIDANCE 7 | |
| ARTICLE 6: MARKS | 9 |
| ARTICLE 7: COPYRIGHTS | 11 ARTICLE 8: CONFIDENTIAL INFORMATION 12 ARTICLE 9: EXCLUSIVE RELATIONSHIP; NON-COMPETITION 13 ARTICLE 10: FEES14 |
| ARTICLE 11: HYPER KIDZ BUSINESS IMAGE AND OPERATION16 ARTICLE 12: MARKETING24 ARTICLE 13: ACCOUNTING, REPORTS AND FINANCIAL STATEMENTS28 ARTICLE 14: INSPECTIONS AND AUDITS 28 ARTICLE 15: INDEPENDENT CONTRACTORS; INDEMNIFICATION29 | |
| ARTICLE 16: TRANSFER | 32 ARTICLE 17: GRANT OF RENEWAL FRANCHISES37 ARTICLE 18: TERMINATION OF THE FRANCHISE39 ARTICLE 19: RIGHTS AND OBLIGATIONS UPON TERMINATION OR EXPIRATION 42 ARTICLE 20: DISPUTE RESOLUTION45 ARTICLE 22: MISCELLANEOUS49 |
| ARTICLE 23: SECURITY INTEREST | 52 ARTICLE 24: NOTICES AND PAYMENTS 53 ARTICLE 25: YOUR REPRESENTATIONS AND ACKNOWLEDGMENTS 53 |
| ATTACHMENTS | |
| ATTACHMENT 1: | FRANCHISEE ACKNOWLEDGMENT STATEMENT |
| ATTACHMENT 2: | TRADEMARKS |
| ATTACHMENT 3: | TERRITORY |
| ATTACHMENT 4: | GENERAL RELEASE |
| ATTACHMENT 5: | ACH AUTHORIZATION |
| ATTACHMENT 6: | COLLETERAL ASSIGNEMENT OF LEASE |
| ATTACHMENT 7: | STATEMENT OF OWNERSHIP INTERESTS IN FRANCHISEE |
| ATTACHMENT 8: | SPOUSAL GUARANTY |
| ATTACHMENT 9: | CONFIDENTIALITY AND NON-COMPETE AGREEMENT |
| ATTACHMENT 10: | INTERNET ADVERTISING, SOCIAL MEDIA AND TELEPHONE ACCOUNT AGREEMENT |
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a Statement of Ownership Interests in Franchisee is included as Attachment 7 to the Franchise Agreement. This attachment is relevant to identifying all individuals or entities with a legal or beneficial ownership interest in the franchisee. These individuals are designated as 'Owners' on this attachment.
This requirement ensures that Hyper Kidz knows who the Principals are in each franchise location. Principals are defined as anyone holding direct or indirect legal or beneficial ownership interests in the franchisee entity, as well as those with other property rights in the franchise. This information is crucial for Hyper Kidz to maintain accurate records of ownership and to ensure compliance with the franchise agreement.
For a prospective Hyper Kidz franchisee, this means that they must disclose all individuals or entities with ownership interests in their franchise. This disclosure is not just a formality; it legally binds those individuals to certain obligations and standards set forth in the franchise agreement. Furthermore, any changes in ownership must be reported to and approved by Hyper Kidz, and the Statement of Ownership Interests in Franchisee must be updated accordingly.