What expenses are franchisees responsible for when Hyper Kidz provides additional on-site training?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ve the right to reduce the duration of our representative's visit or to not provide opening assistance.
If, during the term of your Franchise Agreement, you request that we provide additional training on-site at your Hyper Kidz Business, or if we determine that you need additional training or assistance (such as if you incur unsatisfactory or below average ratings after an inspection), you must pay our then-current per diem fee (currently $250) for each trainer we provide, and
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee requests additional on-site training, or if Hyper Kidz determines that additional training is necessary due to unsatisfactory performance, the franchisee is responsible for specific expenses. These expenses include a per diem fee for each trainer provided by Hyper Kidz, which is currently $250 per trainer.
In addition to the per diem fee, the franchisee must also reimburse Hyper Kidz for any expenses incurred by the trainers during the on-site training. These reimbursable expenses specifically include the costs of travel, lodging, and meals for the trainers. This means that franchisees need to budget not only for the daily fee but also for the logistical costs associated with bringing trainers to their Hyper Kidz location.
This policy ensures that Hyper Kidz franchisees bear the direct costs of additional training, which is a fairly standard practice in the franchise industry. It incentivizes franchisees to utilize initial training effectively and maintain operational standards to avoid the need for supplementary on-site support. Franchisees should factor these potential costs into their financial planning and be aware that failure to maintain satisfactory ratings could lead to mandatory additional training at their expense.
Prospective franchisees should inquire about the typical duration and frequency of additional training, as well as the average costs of travel, lodging, and meals in their area, to better estimate potential expenses. Understanding the criteria that trigger mandatory training is also crucial for managing operational performance and avoiding unexpected costs.