What happens to any monies remaining in the Hyper Kidz Fund at the end of a fiscal year?

According to the 2024 Hyper Kidz Franchise Disclosure Document, any monies remaining in the advertising fund at the end of a fiscal year will carry over to the next fiscal year. This means that unspent funds are not returned to franchisees or absorbed by the franchisor, but are instead reserved for future advertising and promotional activities.

This policy is fairly common in franchising, as advertising funds are typically intended for long-term brand building and marketing initiatives. By carrying over the funds, Hyper Kidz aims to ensure that there are sufficient resources available for ongoing and future campaigns, even if there are fluctuations in contributions or spending from year to year.

As a Hyper Kidz franchisee, this means that your contributions to the advertising fund are not necessarily spent immediately, but are invested in the long-term marketing strategy of the brand. While the FDD stipulates that Hyper Kidz will provide an annual unaudited statement detailing the fund's income and expenses, franchisees do not have direct control over how the funds are spent, but can expect that unspent funds will be used for future advertising purposes.