What expenses are the franchisee responsible for while attending the Hyper Kidz training program?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ccess at all times and in the manner that we specify.
Training (Franchise Agreement Article 5)
No later than 60 days before the date your Hyper Kidz Business begins operation, you (or one of your Principals), your General Manager and one additional trainee (for a maximum of three people) must attend and complete, to our satisfaction, our mandatory initial training program. Training will be conducted at our Affiliate's Hyper Kidz Business in Columbia, Maryland, at our headquarters, or at another location we designate. Initial training programs will be offered at various times during the year depending on the number of new franchisees entering the System, replacement general managers and other personnel needing training, the number of new Hyper Kidz Businesses being opened and the timing of the scheduled openings of Hyper Kidz Businesses. There is currently no set schedule for providing our training program. We may train more than one franchisee and their General Managers at the same training session.
We will provide instructors and training materials for the initial training of you, your General Manager and one additional trainee for the training fee, and you must pay the expenses incurred by you and your trainees while attending training, including travel, lodging, meals and applicable wages. You may also have additional personnel trained by us for your Hyper Kidz, at your expense. You (or one of your Principals) and your General Manager must complete the initial training program to our satisfaction. If you (or one of your Principals) do not satisfactorily complete the initial training program, we will give you an
opportunity to retake our training program at your expense. If you do not satisfactorily complete the initial training program a second time, we may terminate your Franchise Agreement. Franchise owners and their family members may not be General Managers without prior approval from us.
If the General Manager does not satisfactorily complete the initial training program or if we determine that the General Manager cannot satisfactorily complete the training program, you must designate a replacement to satisfactorily complete the training, at your expense, before you will be permitted to open your Hyper Kidz Business. Any General Manager subsequently designated by you must also receive and complete the initial training to our satisfaction, even if this requires sending that manager to the headquarters training program, at your expense. We have the right to charge a reasonable fee (currently $1,500) for the initial training we provide to a replacement or successor employee if we have not approved you to provide the training.
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, franchisees are responsible for covering certain expenses while attending the initial training program. Specifically, the franchisee must pay for the travel, lodging, meals, and applicable wages for themselves, their General Manager, and one additional trainee. Hyper Kidz provides the instructors and training materials for these three individuals as part of the training fee.
If a franchisee (or one of their Principals) does not satisfactorily complete the initial training program, they will have the opportunity to retake the training program, but they must cover the expenses for the second attempt. If the General Manager does not satisfactorily complete the training, the franchisee must designate a replacement who must also complete the training at the franchisee's expense before the Hyper Kidz Business can open. Any subsequently designated General Manager must also undergo and complete the initial training at the franchisee's expense.
Hyper Kidz has the right to charge a reasonable fee, currently $1,500, for the initial training provided to a replacement or successor employee if the franchisee has not been approved to provide the training themselves. This fee, along with the costs of travel, lodging, meals, and applicable wages, would be the franchisee's responsibility. These stipulations ensure that all key personnel are adequately trained before the Hyper Kidz Business begins operations, with the franchisee bearing the financial responsibility for ensuring this requirement is met.
Franchisees should budget accordingly to accommodate these potential training-related expenses, especially considering the possibility of needing to train replacement personnel or retake the program. This is a fairly standard practice in franchising, as it ensures that franchisees and their staff are well-prepared to operate the business according to the franchisor's standards.