Under the Hyper Kidz franchise agreement, what is the definition of 'immediate family'?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
In either case, the non-competition agreement shall provide that neither you, your Principal(s) nor your transferring Principal(s) (whichever is applicable) nor any member of their immediate families shall directly or indirectly for a period of two (2) years commencing on the effective date of such transfer:
(1) have any interest as a disclosed or beneficial owner in any Competitive Business located or operating within fifteen (15) miles of your Hyper Kidz Business or any other Hyper Kidz Business in the System; or
(2) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for any Competitive Business located or operating within fifteen (15) miles of your Hyper Kidz Business or any other Hyper Kidz Business in the System.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
The 2024 Hyper Kidz Franchise Disclosure Document does not explicitly define "immediate family". However, the term is used in the context of non-competition agreements related to the transfer of ownership.
Specifically, if a Hyper Kidz franchisee or one of their principals transfers their interest in the franchise, they, along with their principals and members of their immediate families, are subject to a non-competition agreement. This agreement restricts them from having any interest in or performing services for a Competitive Business within 15 miles of any Hyper Kidz location for two years.
Since the FDD does not define "immediate family", prospective franchisees should seek clarification from Hyper Kidz regarding who is included in this definition to fully understand the scope and implications of the non-competition agreement. This is important for franchisees and their families to consider, as it could impact their future business or employment opportunities.