Besides the initial franchise fee, what else is required before opening a Hyper Kidz business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
s to be developed hereunder contemporaneously with the execution of this Agreement and we will apply a portion of the Development Fee to satisfy in full the initial franchise fee for this first Hyper Kidz Business. For each additional Hyper Kidz Business you develop hereunder, when you execute the Franchise Agreement for that Hyper Kidz Business we will apply a pro rata portion of the Development Fee toward the initial franchise fee due for such Hyper Kidz Business and the balance of the initial franchise fee, or Nineteen Thousand Seven Hundred Fifty Dollars ($19,750), is payable in a lump sum upon execution of such Franchise Agreement.
SECTION 3: SCHEDULE AND MANNER FOR EXERCISING DEVELOPMENT RIGHTS
- 3.1 Recognizing that time is of the essence, you agree to exercise each of the Development Rights granted hereunder in the manner specified herein, and to satisfy the Minimum Performance Schedule in a timely manner. Your failure to adhere to the Minimum Performance Schedule shall constitute a default under this Agreement as provided in Section 9.1.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, before a Hyper Kidz business can open, a fully executed Franchise Agreement must be in place, and all requirements outlined in the Franchise Agreement for opening the business must be met. Specifically, Section 3.1 states that under no circumstances may a franchisee open a Hyper Kidz Business for business unless and until there is a fully executed Franchise Agreement in place for such Hyper Kidz Business and you have complied with all requirements under the Franchise Agreement for opening such Hyper Kidz Business.
Additionally, Section 7.9 emphasizes that a Hyper Kidz Business cannot be opened until a Franchise Agreement has been fully executed, and the initial franchise fee has been paid. This highlights the importance of fulfilling all contractual and financial obligations before commencing operations.
These stipulations ensure that Hyper Kidz maintains brand consistency and operational standards across all franchise locations. For a prospective franchisee, this means carefully reviewing and adhering to all terms and conditions within the Franchise Agreement, including financial obligations and operational requirements, to avoid any delays or complications in opening their Hyper Kidz business.