Under what circumstances related to site selection, development, training, and operation can a Hyper Kidz franchise be terminated?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ch to you and you do not (a) correct such breach within fifteen (15) days after delivery to you of such notice of breach; or (b) if such breach cannot reasonably be corrected within thirty (30) days after delivery of notice of breach, undertake within ten (10) days after delivery of such notice of breach and continue until completion efforts to cure such breach and furnish proof acceptable to us upon our request of such efforts and the date full compliance will be achieved.
18.2 Termination Upon Notice – No Opportunity to Cure
Notwithstanding Section 18.1, we may terminate this Agreement upon delivery of notice of termination to you without opportunity to cure if you commit any of the following breaches:
- 18.2.1 You fail to (i) locate a suitable Site; (ii) obtain lawful possession of the Site; (iii) develop the Hyper Kidz Business; (iv) satisfactorily complete our initial training program; or (v) commence operation of business, within the times provided in this Agreement;
- 18.2.2 You or any of your Principals abandon, surrender or transfer control of the operation of the Hyper Kidz Business without our prior written approval. For purposes hereof, "abandon" shall be the closure of your Hyper Kidz Business for five (5) consecutive days without our prior written consent;
- 18.2.3 You or any of your Principals has made any material misrepresentation or omission in the application for the Franchise;
- 18.2.4 You or any of your Principals (i) are convicted by a trial court of or plead guilty or no contest to a felony or to another crime or offense, including a crime against a child, that may adversely affect the reputation of you, the Hyper Kidz Business or the goodwill associated with the Marks; or (ii) engage in any conduct which is injurious or prejudicial to the goodwill associated with the Marks or the System or which adversely affects the reputation of us or any Hyper Kidz Business;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Hyper Kidz can terminate the franchise agreement without opportunity to cure under specific circumstances related to site selection, development, training, and operation. These include failing to locate a suitable site, failing to obtain lawful possession of the site, failing to develop the Hyper Kidz business, not satisfactorily completing the initial training program, or failing to commence business operations within the timeframes outlined in the agreement.
Additionally, Hyper Kidz can terminate the agreement if the franchisee or their principals abandon, surrender, or transfer control of the Hyper Kidz business without prior written approval. Abandonment is defined as closing the Hyper Kidz Business for five consecutive days without written consent from Hyper Kidz. Losing the right to possession of the site and failing to relocate the Hyper Kidz business according to the agreement also constitutes grounds for termination.
Regarding operational compliance, Hyper Kidz can terminate the agreement if the franchisee knowingly maintains false books or records, submits substantially false reports, causes a default under the site lease and fails to cure it, or repeatedly fails to comply with the agreement's mandatory specifications, standards, or procedures. A threat or danger to public health or safety resulting from the construction, maintenance, or continued operation of the Hyper Kidz Business can also lead to termination.
These termination clauses highlight the importance of adhering to the franchise agreement's stipulations regarding site selection, development timelines, training requirements, and operational standards. Failure to meet these requirements can result in the termination of the franchise agreement, emphasizing the need for careful planning and diligent execution by the franchisee.