Under what condition is each provision of the Amendment effective for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Virginia State Corporation Commission's Division of Securities and Retail Franchising, the parties to the attached Boomerang Franchise, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
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- Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Virginia Retail Franchising Act are met independently without reference to this Amendment.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 49–52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, an amendment to the franchise agreement is only effective if the jurisdictional requirements of the Virginia Retail Franchising Act are independently met, without relying on the amendment itself. This condition applies to both the standard Franchise Agreement and the Multi-Unit Development Agreement (MUDA) within Virginia. This requirement is set in place by the Virginia State Corporation Commission's Division of Securities and Retail Franchising.
This means that for any part of the amendment to be valid, it must comply with Virginia's franchising laws on its own. The amendment cannot be used as a crutch to bypass any existing regulations or legal requirements. This ensures that franchisees are protected by the full extent of Virginia law, regardless of any modifications made in the amendment.
For a prospective Hyper Kidz franchisee, this stipulation provides an added layer of security. It prevents the franchisor from using the amendment to circumvent legal obligations or reduce franchisee rights under Virginia law. Franchisees should ensure they understand the base requirements of the Virginia Retail Franchising Act, as each provision of the amendment is contingent upon meeting those requirements independently.