What was the amount of non-refundable franchise fees collected by Hyper Kidz in 2025?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
rred Franchise Fees and Franchise Acquisition Costs*
Estimated revenues and franchise acquisition costs to be recognized in future periods related to nonrefundable deferred franchise fees as reported at December 31, 202 is as follows:
| | Non-refundable Fra
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the estimated non-refundable franchise fees to be recognized for the year ending December 31, 2025, is $20,700. This amount represents the portion of initial franchise fees that Hyper Kidz anticipates recognizing as revenue during that specific year.
This projection is based on the company's accounting practices for recognizing revenue from franchise fees over time as it fulfills its obligations to franchisees. The non-refundable nature of these fees means that franchisees will not receive a refund of this amount under any circumstances, regardless of the performance or termination of the franchise agreement.
For a prospective Hyper Kidz franchisee, this information provides insight into the financial structure of the franchise agreement and the revenue recognition practices of the franchisor. Understanding how franchise fees are recognized can help franchisees better assess the financial stability and performance of the Hyper Kidz franchise system.