What is the amount of the Development Fee for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
VELOPER – DEVELOPMENT OF THREE HYPER KIDZ BUSINESSES**
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Development Fee (1) | $85,000 | Lump Su |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the Development Fee is $85,000. This fee is paid as a lump sum when signing the Multi-Unit Development Agreement and is payable to Hyper Kidz. This fee allows a developer to open three Hyper Kidz businesses.
If the developer wants to develop more than three Hyper Kidz Businesses, the development fee will increase by $19,750 for each additional Hyper Kidz Business the developer commits to develop. This is important for prospective franchisees to understand, as it directly impacts the initial investment required to secure the rights to develop multiple Hyper Kidz locations.
Understanding the terms and conditions surrounding the Development Fee is crucial for anyone considering a multi-unit franchise agreement with Hyper Kidz. It is important to note that this fee is non-refundable. Prospective franchisees should carefully consider the number of units they plan to develop and factor in the corresponding Development Fee when evaluating the overall financial commitment.