Under what condition is each provision of the Hyper Kidz franchise agreement amendment effective?

According to the 2024 Hyper Kidz Franchise Disclosure Document, specifically the Virginia Amendment to the Boomerang Franchise LLC Franchise Agreement, each provision of the amendment is effective only if the jurisdictional requirements of the Virginia Retail Franchising Act are independently met, without relying on the amendment itself. This condition ensures that the amendment's provisions are valid and enforceable under Virginia law.

This requirement is set in place by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. This also requires Hyper Kidz to defer payment of the initial franchise fee and other initial payments from franchisees until Hyper Kidz has fulfilled its pre-opening obligations as outlined in the franchise agreement. This protects the franchisee's investment by ensuring that Hyper Kidz completes its responsibilities before receiving payment.

Furthermore, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Hyper Kidz or its representatives. This provision overrides any conflicting terms in other documents executed in connection with the franchise, reinforcing the franchisee's rights and protections under applicable state laws.