Under what circumstances can Hyper Kidz arrange for cleaning, repair, or replacement of items at the franchisee's expense if the franchisee fails to maintain the Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
11.1.2 In addition to our rights to terminate this Agreement as set forth herein, if you do not maintain the condition and appearance of the Hyper Kidz Business as herein required, we may, upon not less than ten (10) days' notice to you, or immediately in cases of health or sanitation hazards or other public endangerment, and without liability for trespass or tort: (a) arrange for the necessary cleaning, sanitation, repair, remodeling, upgrading, painting or decorating; or (b) replace the necessary fixtures, furnishings, equipment, or signs. You shall pay the entire cost thereof following the receipt of a bill for such work from us.
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 condition and appearance of their Hyper Kidz Business as required, Hyper Kidz has the right to intervene and take corrective actions at the franchisee's expense.
Specifically, Hyper Kidz may arrange for necessary cleaning, sanitation, repair, remodeling, upgrading, painting, or decorating. They can also replace necessary fixtures, furnishings, equipment, or signs. However, Hyper Kidz must provide the franchisee with at least ten days' notice before taking such actions. An exception to the notice period exists in cases of health or sanitation hazards or other public endangerment, where Hyper Kidz can act immediately.
Following the completion of any such work, Hyper Kidz will provide the franchisee with a bill for the entire cost, which the franchisee is obligated to pay. This provision underscores the importance of maintaining the Hyper Kidz Business to the franchisor's standards and highlights the potential financial consequences of failing to do so.