Besides site selection and build-out assistance, what other resources and assistance might Hyper Kidz provide to multi-unit developers?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
profits. (Franchise Agreement – Section 11.13.)
Continuing Obligations
Multi-Unit Development Agreement: During the term of the Multi-Unit Development Agreement:
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- We will review site survey information on sites you select for conformity to our standards and criteria for potential sites and, if the site meets our criteria, approve the site for a Hyper Kidz Business. We will approve sites for future/additional units under a Multi Unit Agreement using our then current site criteria. (Multi-Unit Development Agreement – Section 8.1).
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- We will provide you with standard specifications and layouts for building and furnishing the Hyper Kidz Business (Multi-Unit Development Agreement – Section 8.2).
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- We will review your site plan and final build-out plans and specifications for conformity to our standards and specifications (Multi-Unit Development Agreement – Section 8.3).
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- We will provide other resources and assistance as may be developed and offered to our multi-unit developers (Multi-Unit Development Agreement – Section 8.4).
Franchise Agreement: During the operation of your Hyper Kidz Business, we will do the following:
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- Furnish guidance to you with respect to: (a) specifications, standards and operating procedures utilized by Hyper Kidz Businesses and any modifications of them; (b) purchasing approved equipment, fixtures, signs, inventory, and operating materials and supplies; (c) development and implementation of local marketing and promotional programs; (d) administrative, bookkeeping, accounting, inventory control, and general operating and management procedures of Hyper Kidz Businesses; and (e) establishing and conducting employee training programs at your Franchised Business. This guidance will be furnished in the form of the Manual, bulletins, written reports and recommendations, other written materials (including email), periodic telephonic consultations, or consultations at our offices or at your Franchised Business. (Franchise Agreement – Section 5.4.)
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- Additional training and assistance on-site at your Hyper Kidz at your request or if we determine that additional training or assistance is necessary. You must pay our then-current per diem fee
for each trainer we send to you, and you must reimburse our trainers' expenses, including travel, lodging and meals. (Franchise Agreement – Section 5.2.)
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- License to you the right to use the Marks and certain copyrighted works and will indemnify you from certain claims relating to your use of the Marks as more fully described in Items 13 and 14. (Franchise Agreement – Articles 6 and 7.)
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- Maintain a Brand Development Fund. (Franchise Agreement Section 12.1.)
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- At our option, hold a meeting of our franchisees. This meeting will be held when we believe it will be beneficial to the franchisees in the System and will not be held more frequently than annually. (Franchise Agreement – Section 5.3.)
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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, in addition to site selection and build-out assistance, Hyper Kidz may provide multi-unit developers with other resources and assistance as they are developed and offered.
Hyper Kidz will also consult with franchisees to develop a grand opening advertising campaign for the Hyper Kidz Business. Franchisees are required to spend at least $5,000 on this campaign, which must include elements required by Hyper Kidz, such as direct mail campaigns and giveaways. This campaign must be conducted within the period of 12 weeks before and 12 weeks after the opening of the Hyper Kidz Business.
Hyper Kidz also has a brand development fund, where franchisees must pay a non-refundable Brand Development Fee equal to 2% of their gross sales. Hyper Kidz may contribute allowances they receive from approved suppliers to the fund, but this does not reduce the franchisee's obligation to pay the Brand Development Fee. Hyper Kidz may also form an advisory council to improve the system, the products and services offered, advertising, and any other matters they deem appropriate.