By what day of the week must a Hyper Kidz franchisee provide the Royalty Report?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
By Monday of each week, you shall provide us with a royalty report itemizing the Gross Sales for the preceding week ending Sunday ("Royalty Report") by modem or, if not reasonably available, by facsimile transmission or such other method of delivery as we may reasonably direct. It shall remain your responsibility to provide us with such Royalty Report, and any other reports required hereunder, notwithstanding that we shall have the right and ability to access sales and other information directly from your computer system. At Franchisor's option, Franchisee shall submit, or grant Franchisor access to, the Gross Revenue Report by an electronic transfer of data via the POS System at the times and interims then specified by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to submit a Royalty Report to the company by Monday of each week. This report must detail the Gross Sales for the preceding week, which ends on Sunday. The report can be submitted via modem, or if that's not available, by facsimile transmission or another delivery method as directed by Hyper Kidz.
Even if Hyper Kidz has the capability to directly access sales information from the franchisee's computer system, it remains the franchisee's responsibility to ensure the Royalty Report is submitted on time. Hyper Kidz also has the option to require franchisees to submit, or grant access to, the Gross Revenue Report through an electronic transfer of data via the POS system at specified times.
Timely and accurate submission of the Royalty Report is crucial, as failure to do so can result in Hyper Kidz debiting the franchisee's account for 120% of the last Royalty Fee and Brand Development Fee. This highlights the importance of adhering to the reporting schedule and maintaining accurate sales records to avoid potential financial penalties and ensure smooth operations with Hyper Kidz.