Is a Hyper Kidz business required to be a member of more than one marketing cooperative?

According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee will not be required to be a member of more than one marketing cooperative. Hyper Kidz retains the discretion to establish local or regional marketing cooperatives and determine their rules. If Hyper Kidz establishes a cooperative or approves one formed by franchisees, franchisees must join the cooperative in their area. However, the FDD explicitly states that a Hyper Kidz business will never be required to be a member of more than one cooperative.

These cooperatives are governed as Hyper Kidz prescribes and may require periodic contributions from members. Funds contributed to a cooperative can be credited toward the franchisee's local marketing obligations. However, if the contribution to the cooperative is less than the required local marketing expenditure, the franchisee must spend the difference locally.

This arrangement provides Hyper Kidz with control over marketing efforts while allowing for regional customization through cooperatives. For a prospective franchisee, this means that while participation in a cooperative may be mandatory, the financial contributions can offset required local marketing expenses, but they must be prepared to spend the difference locally if their contribution is less than the required local marketing expenditure.