If I incur an insufficient funds fee with Hyper Kidz, is this fee in addition to other fees?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
debited from your account are greater than the Royalty Fee and Brand Development Fee actually owed, we will credit the excess against the amount we otherwise would debit from your account for the next payment due.
10.8 Payment to Vendors
We shall have the right under this Agreement to debit your bank account for and pay any vendor account of yours that is at least sixty (60) days old.
10.9 Insufficient Funds Fee
If there are not sufficient funds in your account to permit us to debit the account for the payment
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, an insufficient funds fee is charged if there are not enough funds in your account to cover payments owed to Hyper Kidz. This fee is $125.
The insufficient funds fee is in addition to other fees. Specifically, the FDD states that this fee is in addition to late fees and interest on any overdue amount. It is also in addition to any fees your bank charges.
Furthermore, incurring three insufficient funds fees within a 12-month period can lead to the termination of the Franchise Agreement, without an opportunity to correct the default. This highlights the importance of maintaining sufficient funds in the designated account to avoid these fees and potential termination of the agreement.