What must a Hyper Kidz franchisee maintain in sufficient supply?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You must maintain in sufficient supply (as we may prescribe in the Manual or otherwise in writing), and use at all times, only the products and supplies purchased from suppliers designated or approved by us, and any other materials, paper goods, fixtures, furnishings, equipment, signs and other items as conform with our standards and specifications. You must not deviate from those standards and specifications by the use of non-conforming items, without our prior written consent.
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, franchisees must maintain a sufficient supply of products and supplies purchased from designated or approved suppliers. These products and supplies must adhere to Hyper Kidz's standards and specifications, as outlined in the Confidential Operations Manual or in writing. The specific quantity constituting a "sufficient supply" will be prescribed by Hyper Kidz in the manual or in writing.
This requirement ensures that all Hyper Kidz locations maintain a consistent level of quality and service. Franchisees are prohibited from deviating from these standards by using non-conforming items without prior written consent from Hyper Kidz. This restriction allows Hyper Kidz to control the quality and consistency of its brand across all franchise locations.
Hyper Kidz estimates that purchases from approved suppliers or those conforming to their specifications will account for approximately 80% to 85% of a franchisee's total purchases when establishing the business. In the continuing operation of the Hyper Kidz Business, these purchases are estimated to be approximately 50% to 60% of total purchases. This indicates a significant reliance on approved suppliers, especially during the initial setup phase. Franchisees should factor these costs into their financial planning and be prepared to manage relationships with approved vendors to maintain adequate inventory levels.