Did Hyper Kidz earn any allowances during the fiscal year ended December 31, 2023?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to collect and retain any and all allowances, rebates, credits, incentives, or benefits (collectively, "Allowances") offered by manufacturers, suppliers, and distributors to you, to us, or to our affiliates, based upon your purchases of products and services from manufacturers, suppliers, and distributors. We or our affiliates will have all of your right, title, and interest in and to any and all of these Allowances. We or our affiliates may collect and retain any or all of these Allowances without restriction (unless otherwise instructed by the manufacturer, supplier, or distributor). We may also choose to contribute these Allowances to the Brand Development Fund, but if we do so it does not reduce or eliminate your obligation to pay the Brand Development Fee. During the fiscal year ended December 31, 2023, we did not earn any Allowances.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz has the right to collect allowances, rebates, credits, incentives, or benefits from manufacturers, suppliers, and distributors based on franchisee purchases. These allowances can be retained by Hyper Kidz or its affiliates. However, for the fiscal year that ended December 31, 2023, Hyper Kidz states that it did not earn any allowances.
This means that during that specific period, Hyper Kidz did not receive any financial benefits from suppliers based on franchisee purchases. While this was the case in 2023, Hyper Kidz retains the right to collect such allowances in the future.
For a prospective franchisee, this indicates that Hyper Kidz's revenue and financial performance are not currently dependent on these supplier allowances. However, franchisees should be aware that Hyper Kidz may choose to collect these allowances in the future, which could potentially impact the financial relationship between the franchisee, the franchisor, and the suppliers.