Does the Hyper Kidz advisory council have decision-making authority?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
We may, in our discretion, form an advisory council to work with us to improve the System, the products and services offered by Hyper Kidz Businesses, advertising conducted by the Fund, and any other matters that we deem appropriate. If an advisory council is formed it will act solely in an advisory capacity and will not have decision making authority. We will have the right to form, change, merge or dissolve any advisory council. The advisory council will include our representatives and franchisee representatives. Franchisee representatives may be chosen by us or may be elected by a vote of other franchisees. If you participate in an advisory council, you will pay any expenses you incur related to your participation, which may include travel, lodging and meals expenses if you must travel to attend council meetings.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the advisory council does not have decision-making authority. Hyper Kidz may form an advisory council to work with them to improve the System, the products and services offered, advertising, and other matters. However, the FDD specifies that the advisory council will act solely in an advisory capacity. Hyper Kidz retains the right to form, change, merge, or dissolve any advisory council.
The advisory council will include representatives from Hyper Kidz and franchisees. Franchisee representatives may be chosen by Hyper Kidz or elected by a vote of other franchisees. If a franchisee participates in the advisory council, they are responsible for any expenses incurred, such as travel, lodging, and meals, if travel is required to attend council meetings.
This arrangement means that while franchisees may have input and a voice through the advisory council, Hyper Kidz ultimately makes all final decisions. Prospective franchisees should be aware that participation in the advisory council does not guarantee influence over the direction or policies of the franchise system. Franchisees bear the costs of participating in the advisory council, so they should weigh the potential benefits against the expenses.