What functions does the computer system used by Hyper Kidz franchisees perform?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
and/or to maintain a social media website.
Computer System (Franchise Agreement Article 11)
You must purchase and use certain computer hardware and software, including point of sale systems that we designate, that are capable of electronically interfacing with our computer system. The computer system is used to collect and monitor point of sale information, create business reports, scheduling, payroll management, inventory management, credit card processing, and booking parties.
The computer system must allow us to have immediate access to the information monitored by the system, and there is no contractual limitation on our access or use of the information we obtain. You must install and maintain equipment and a highspeed internet connection in accordance with our specifications to permit us to access the point of sale (or other computer hardware and software) at your Franchised Business premises as described above. This will permit us to electronically inspect and monitor information concerning your Hyper Kidz Business's Gross Sales and any other information that may be contained or stored in the computer system, including the ability to review your video surveillance. You must make sure that we have access at the times and in the manner we specify, at your cost.
You must purchase the computer system we specify and you must have Party Center software. Our specific requirements for the computer system will be included in our Manual. You must purchase the computer system from any authorized seller, unless we designate a specific supplier. We expect that 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 estimate that the cost of software updates and/or subscriptions will cost approximately $3,600 annually.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the computer system that franchisees must purchase and use is designed to perform several key functions for the business. These functions include collecting and monitoring point of sale information, which is essential for tracking sales and revenue. The system also creates business reports to help franchisees analyze their performance and make informed decisions.
In addition to sales and reporting, the computer system supports scheduling, which is crucial for managing staff and resources effectively. It also handles payroll management, ensuring that employees are paid accurately and on time. Inventory management is another important function, helping franchisees keep track of their stock levels and minimize waste. The system also facilitates credit card processing, allowing franchisees to accept payments from customers. Finally, the computer system is used for booking parties, which are a significant source of revenue for Hyper Kidz businesses.
Hyper Kidz requires that the computer system allows them to have immediate access to all information monitored by the system, without any contractual limitations on their access or use of the data. Franchisees must also install and maintain equipment and a high-speed internet connection to enable Hyper Kidz to access the point of sale system and other hardware and software at the franchise location. This access allows Hyper Kidz to monitor the franchisee's gross sales and any other information stored in the system, including video surveillance. Franchisees are responsible for ensuring that Hyper Kidz has access to the system at the times and in the manner specified by the company, at the franchisee's own cost.
The cost of the computer system is estimated to be between $6,500 and $10,000, including initial software licenses. Franchisees are also expected to incur annual costs of approximately $3,600 for software updates and/or subscriptions. While Hyper Kidz recommends purchasing a maintenance contract for the computer system, it is not required. The cost of such a contract will vary depending on the level of service selected.