What happens if a Hyper Kidz franchisee does not participate in the advertising and public relations programs conducted by the Fund?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must participate in all advertising and public relations programs conducted by the Brand Development Fund. The FDD does not explicitly state the consequences of non-participation. However, it does state that franchisees must pay a Brand Development Fee equal to 2% of gross sales.

Given the mandatory nature of the Brand Development Fee and the required participation in advertising and public relations programs, non-compliance could potentially lead to a breach of the franchise agreement. Franchise agreements typically outline specific remedies for breaches, which may include penalties, required corrective actions, or even termination of the franchise agreement.

Prospective Hyper Kidz franchisees should seek clarification from the franchisor regarding the specific repercussions of failing to participate in the advertising and public relations programs. Understanding the potential consequences is crucial for making an informed decision and ensuring compliance with the franchise agreement. It would also be prudent to consult with a franchise attorney to fully understand the legal implications.