Are Hyper Kidz franchisees responsible for the expenses incurred by their trainees while attending the initial training program?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ndable under any circumstances.
Training Fee: You must pay us a training fee equal to $7,500 when you schedule your trainees to attend our initial training program. We will train up to three people for the training fee. If you wish to send additional trainees to our initial training program, you must pay an additional training fee of $1,500 per person. You must also pay all expenses your trainees incur while attending training, including travel, lodging, meals and applicable wages. T
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are indeed responsible for covering the expenses of their trainees during the initial training program. Specifically, the franchisee must pay for travel, lodging, meals, and applicable wages for themselves and their trainees. Hyper Kidz provides the instructors and training materials for up to three people (the franchisee or one of their principals, the general manager, and one additional trainee) as part of the initial training fee.
This means that in addition to the $7,500 training fee, a Hyper Kidz franchisee needs to budget for the costs associated with sending their personnel to the training location. These 'out-of-pocket costs' are in addition to the training fee paid to Hyper Kidz. Item 7 notes that the estimated initial investment includes these out-of-pocket costs, such as travel, lodging, meals and wages for the first three trainees. The lower end of the estimate assumes trainees live within driving distance of the training facility, while the higher end accounts for additional travel expenses.
Furthermore, if a franchisee wishes to send more than three people to the initial training, they must pay an additional training fee of $1,500 per person, on top of covering all travel, lodging, meals, and wage expenses for those additional trainees. This could significantly increase the initial investment, especially if the franchisee is located far from the training facility in Columbia, Maryland, or another designated location.
If the franchisee or their general manager does not complete the initial training program satisfactorily, they will have an opportunity to retake the training program, but at their own expense. If the general manager cannot satisfactorily complete the training program, the franchisee must designate a replacement to complete the training at their expense before being permitted to open the Hyper Kidz Business. This highlights the importance of budgeting not only for the initial training expenses but also for potential retakes or additional training for replacement personnel.