Are Hyper Kidz franchisees required to participate in all advertising and public relations programs conducted by the Fund?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to participate in all advertising and public relations programs conducted by the Brand Development Fund. This fund is used for brand development, advertising, marketing, and public relations programs deemed necessary by Hyper Kidz to promote the businesses.

This means that as a Hyper Kidz franchisee, you must actively engage in the advertising and public relations efforts initiated by the Fund. While the FDD specifies that Hyper Kidz directs all advertising and public relations programs financed by the Fund, with sole discretion over creative concepts and placement, franchisees are obligated to participate in these programs.

The Brand Development Fund is supported by a non-refundable Brand Development Fee, which is 2% of the franchisee's gross sales. Hyper Kidz has the right to collect grand opening funds and local advertising expenditure to implement campaign activities. Additionally, franchisees are required to spend 2% of gross sales each month for local marketing and promotion.

Hyper Kidz also has the right to form, dissolve, merge, or change the structure of marketing cooperatives. Franchisees may also be required to include specific language, such as "Franchises Available" and Hyper Kidz's website address and telephone number, in their local marketing efforts.