Under what conditions can Hyper Kidz assign the Hyper Kidz agreement and its rights to another entity?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.8 We shall have the right to assign this Agreement and all of our attendant rights and privileges to any person, firm, corporation or other entity provided that, with respect to any assignment resulting in the subsequent performance by the assignee of our functions: (i) the assignee shall, at the time of such assignment, be financially responsible and economically capable of performing our obligations; and (ii) the assignee shall expressly assume and agree to perform such obligations.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz has the right to assign the Multi-Unit Development Agreement and all associated rights and privileges to another entity under specific conditions. The assignee must be financially responsible and economically capable of fulfilling Hyper Kidz's obligations under the agreement at the time of assignment. Additionally, the assignee must expressly agree to assume and perform these obligations.
This clause protects the prospective franchisee by ensuring that if Hyper Kidz sells the franchise network, the new owner has the financial resources and commitment to uphold the existing agreements. This is a fairly standard practice in franchising, as it allows the franchisor flexibility in its business operations while providing some security to franchisees.
It is important for a potential Hyper Kidz franchisee to understand these terms, as they dictate who they will be dealing with in the future. While Hyper Kidz retains the right to assign the agreement, the conditions attached provide a level of assurance that the franchisee's interests will be protected.