Under what circumstances will an agreement relating to matters covered by the Hyper Kidz Franchise Agreement be binding?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
11.4 Specifications, Standards and Procedures
- 11.4.1 You acknowledge that the operation of the Hyper Kidz Business in compliance with our high standards is important to us and other Hyper Kidz Businesses and you agree to maintain such high standards in the operation of the Hyper Kidz Business. You agree to comply with all mandatory specifications, standards and operating procedures relating to the appearance, function, cleanliness, days and hours of operation (subject to applicable law or the terms of your lease), number of telephone lines and operation of a Hyper Kidz Business, and with our requirements for the décor, equipment, format and image of a Hyper Kidz Business as they may be developed or changed by us from time to time. You acknowledge and agree that all mandatory specifications, standards, and operating procedures prescribed from time to time by us in the Operations Manual or otherwise shall constitute binding obligations on your part, and any failure by you to adhere to such mandatory specifications, standards and operating procedures shall constitute grounds for termination of this Agreement by us as provided for herein. All references herein to this Agreement shall include all such mandatory specifications, standards, and operating procedures.
- 11.4.2 You acknowledge that due to peculiarities of particular market areas and circumstances, complete and detailed uniformity may not be practical or in the best interests of all Hyper Kidz Businesses. We reserve the right to vary, in our sole discretion, standards and procedures as they relate to a particular franchisee or group of franchisees. Nothing in this Agreement shall be construed to require us to grant you a like variance, or to permit you to modify the standards and procedures required for the operation of your Hyper Kidz Business. Any such variances or modifications shall be in our sole and absolute discretion.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the franchisee acknowledges that operating the Hyper Kidz Business in compliance with Hyper Kidz's standards is important for maintaining the brand's reputation. As a result, the franchisee agrees to adhere to all mandatory specifications, standards, and operating procedures. These procedures relate to the appearance, function, cleanliness, days and hours of operation, number of telephone lines, and the overall decor, equipment, format, and image of the Hyper Kidz Business. These standards may be updated or changed by Hyper Kidz from time to time.
The mandatory specifications, standards, and operating procedures prescribed by Hyper Kidz in the Operations Manual or otherwise are binding obligations on the franchisee. Failure to adhere to these mandatory specifications, standards, and operating procedures can result in the termination of the Franchise Agreement by Hyper Kidz. All references to the Franchise Agreement include these mandatory specifications, standards, and operating procedures.
Hyper Kidz retains the right to vary standards and procedures for particular franchisees or groups of franchisees due to market area peculiarities and circumstances. However, this does not require Hyper Kidz to grant a similar variance to other franchisees, nor does it permit franchisees to unilaterally modify the standards and procedures required for their Hyper Kidz Business. Any such variances or modifications are at Hyper Kidz's sole and absolute discretion.