Under what circumstances would Hyper Kidz be obligated by or have liability under agreements or representations made by the franchisee?

According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz is not obligated by or have any liability under any agreements or representations made by the franchisee that are not expressly authorized in writing. The franchise agreement explicitly states that neither Hyper Kidz nor the franchisee can make any agreements, warranties, guarantees, or representations, or incur any debt in the name of or on behalf of the other, unless expressly authorized in writing. The agreement also specifies that neither party can represent their relationship as anything other than franchisor and franchisee. Hyper Kidz will not be responsible for damages to any person or property that arise directly or indirectly from the franchisee's operation of the Hyper Kidz Business.

This provision is designed to protect Hyper Kidz from unauthorized actions by franchisees that could create legal or financial obligations for the franchisor. It ensures that franchisees cannot bind Hyper Kidz to contracts, warranties, or other commitments without explicit written consent. This is a common practice in franchising, as it maintains a clear separation of liability and responsibility between the franchisor and its franchisees.

For a prospective Hyper Kidz franchisee, this means they must be very careful not to make any promises or agreements on behalf of Hyper Kidz without first obtaining written authorization. Failure to do so could result in the franchisee being solely liable for those obligations. It also reinforces the importance of adhering to the franchise agreement and operating within the bounds of the authorized relationship between the franchisee and Hyper Kidz. Franchisees should seek written clarification from Hyper Kidz if they are unsure about their authority to make certain representations or agreements.