Can the franchisor estimate the cost of a maintenance contract for the Hyper Kidz computer system?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
at the computer system will cost between $6,500 and $10,000, including initial software licenses.
We recommend, but do not require, that you purchase a maintenance contract for your computer system. We cannot estimate the cost of a maintenance contract for your computer system, as it will depend on the level of service you select. You must obtain all software updates that we require, and we estima
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the franchisor cannot estimate the cost of a maintenance contract for the computer system. The cost will vary based on the level of service the franchisee selects.
The FDD states that franchisees must purchase and use designated computer hardware and software, including point of sale systems, that can interface with Hyper Kidz's computer system. This system is used for various functions, such as collecting point of sale information, creating business reports, scheduling, payroll management, inventory management, credit card processing, and booking parties. The estimated cost of the computer system, including initial software licenses, ranges from $6,500 to $10,000.
While a maintenance contract is recommended, it is not required. Franchisees are responsible for obtaining all necessary software updates, which are estimated to cost approximately $3,600 annually. The franchisee is also responsible for keeping all software up to date and may be required to update or upgrade the computer system during the franchise term, at their own expense. Hyper Kidz does not provide any updates, upgrades, or maintenance for the computer system.