What is the timeframe for a Hyper Kidz franchisee to reimburse the franchisor for insurance purchased on their behalf?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
If you fail to purchase or maintain any insurance required by this Agreement or fail to reimburse us for our purchase of insurance on your behalf within fifteen (15) days of delivery to you of our written demand for reimbursement, then we may terminate this Agreement upon notice of termination without opportunity to cure.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Hyper Kidz has the option to obtain the insurance on the franchisee's behalf. In such a case, the franchisee is required to cooperate with Hyper Kidz to obtain the necessary insurance policies, including executing forms, allowing inspections, and paying the costs and premiums incurred by Hyper Kidz, plus a 10% administrative fee.
Specifically, the franchisee must reimburse Hyper Kidz within fifteen days of receiving a written demand for reimbursement. Failure to reimburse Hyper Kidz within this 15-day period can result in the termination of the Franchise Agreement, without an opportunity to correct the failure.
This clause highlights the importance of maintaining the required insurance coverage and paying premiums on time. Franchisees should ensure they understand the insurance requirements and maintain open communication with Hyper Kidz to avoid any lapses in coverage or payment issues that could lead to termination of the agreement.