Are the fees described in Item 6 of the Hyper Kidz FDD refundable?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Notes:
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- All fees described in this Item 6 are non-refundable. Except as otherwise indicated in the preceding chart, we impose all fees and expenses listed and you must pay them to us. The amounts given may be due to changes in market conditions, our cost of providing services and future policy changes.
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- For the purposes of determining the fees to be paid under the Franchise Agreement, "Gross Sales" means the total selling price of all services and products and all income of every other kind and nature related to the Franchised Business, whether for cash or credit and regardless of collection in the case of credit. If a cash shortage occurs, the amount of Gross Sales will be determined based on the records of the point of sale system and any cash shortage will not be considered in the determination. Gross Sales expressly excludes taxes collected from your customers and paid to the appropriate taxing authority and customer refunds or adjustments. We may authorize certain other items to be excluded from Gross Sales. Any exclusion may be revoked or withdrawn at any time by us.
The Royalty Fee and Brand Development Fee will be withdrawn from your designated bank account by electronic funds transfer ("EFT") on Tuesday of each week based on Gross Sales for the preceding week ending Sunday. On Monday of each week, you must report to us your Gross Sales for the previous week ending Sunday. If you do not report Gross Sales, we may debit your account for 120% of the last Royalty Fee and Brand Development Fee that we debited. If the Royalty Fee and Brand Development Fee we debit are less than the Royalty Fee and Brand Development Fee you actually owe us, once we have been able to determine the true and correct Gross Sales for your Franchised Business, we will debit your account for the balance on a day we specify. If the Royalty Fee and Brand Development Fee we debit are greater than the Royalty Fee and Brand Development Fee you actually owe us, we will credit the excess against the amount we otherwise would debit from your account for the next payment due.
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, all fees described in Item 6 are non-refundable. This means that any payments made to Hyper Kidz for the various fees outlined in this section of the FDD will not be returned to the franchisee under any circumstances, unless specifically stated otherwise.
This policy covers a range of fees, including but not limited to the Royalty Fee, Brand Development Fee, Local Marketing expenses, Technology Fee, Initial Training fees, and various other costs that may arise during the course of the franchise agreement. Hyper Kidz franchisees should carefully consider this non-refundable policy when budgeting and planning their finances, as these fees represent a financial commitment that cannot be recovered.
The FDD also notes that Hyper Kidz may change the amounts of these fees due to market conditions, the cost of providing services, and future policy changes. Franchisees are responsible for staying informed about any such changes and factoring them into their financial planning. While the fees themselves are non-refundable, Hyper Kidz specifies a process for addressing discrepancies in Royalty Fee and Brand Development Fee payments, where overpayments will be credited against future amounts due.