Will the Hyper Kidz Brand Development Fund be used to solicit new franchisees?

According to the 2024 Hyper Kidz Franchise Disclosure Document, the Brand Development Fund will not be used to solicit new franchisees. The fund is specifically for brand development, advertising, marketing, and public relations to promote existing Hyper Kidz businesses.

The Brand Development Fund requires franchisees to pay a non-refundable fee of 2% of their gross sales. Hyper Kidz may also contribute allowances received from approved suppliers to the fund, but this does not reduce the franchisee's obligation to pay the 2% fee. The FDD specifies that Hyper Kidz businesses owned and operated by the company or its affiliates will contribute to the fund on the same basis as franchisees.

In 2023, the Brand Development Fund's spending was allocated as follows: 10% for Local SEO, 20% for Social Media Marketing, 10% for Email Marketing, 10% for Content Marketing, 10% for Online Advertising, 10% for Public Relations, 10% for Sponsorships & Partnerships, 10% for Local Events, 5% for Customer Loyalty Programs, and 5% for Training and Support. This breakdown gives potential franchisees insight into how the fund is typically used to support the Hyper Kidz brand and its existing locations.