What is the amount of the initial franchise fee for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
, any of your Principals, or any member of your or their immediate family from having a direct or indirect ownership interest in any Hyper Kidz Business Franchise Agreement for the operation of any Hyper Kidz Business, or any entity owning, controlling or operating a Hyper Kidz Business, or from providing services to any such Hyper Kidz Business pursuant to other agreements with us.
ARTICLE 10: FEES
10.1 Initial Franchise Fee; Training Fee
- 10.1.1 You agree to pay to us upon execution of this Agreement an "Initial Franchise Fee" in the amount of Forty Two Thousand Five Hundred Dollars ($42,500), less any amount credited toward such Initial Franchise Fee pursuant to the terms of a multi-unit development agreement between you (as multi-unit developer) and us. The Initial Franchise Fee shall be ful
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the initial franchise fee is $42,500. This fee is payable upon the execution of the Franchise Agreement. However, the FDD specifies that this amount may be reduced if the franchisee enters into a multi-unit development agreement with Hyper Kidz.
It is important to note that the initial franchise fee is considered fully earned by Hyper Kidz once the Franchise Agreement is executed. This means that the fee is non-refundable, either in whole or in part, regardless of whether the franchisee ever opens a Hyper Kidz location. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise and providing initial support.
In addition to the initial franchise fee, Hyper Kidz also charges a training fee of $7,500 for up to three trainees to attend the initial training program. This training fee is payable when the franchisee schedules attendance at the initial training program and is also non-refundable. Therefore, a new Hyper Kidz franchisee should be prepared to pay a total of $50,000 for the initial franchise and training fees.