Who will be included as representatives on the Hyper Kidz advisory council?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
We may, in our discretion, form an advisory council to work with us to improve the System, the products and services offered by Hyper Kidz Businesses, advertising conducted by the Fund, and any other matters that we deem appropriate. If an advisory council is formed it will act solely in an advisory capacity and will not have decision making authority. We will have the right to form, change, merge or dissolve any advisory council. The advisory council will include our representatives and franchisee representatives. Franchisee representatives may be chosen by us or may be elected by a vote of other franchisees. If you participate in an advisory council, you will pay any expenses you incur related to your participation, which may include travel, lodging and meals expenses if you must travel to attend council meetings.
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 advisory council, if formed, will include representatives from Hyper Kidz itself and franchisee representatives. The purpose of this council is to collaborate on improvements to the Hyper Kidz system, including the products and services offered, advertising, and other relevant matters. However, the FDD specifies that the advisory council acts solely in an advisory capacity and does not have any decision-making authority. Hyper Kidz retains the right to form, change, merge, or dissolve the advisory council at its discretion.
Franchisee representatives may be chosen either by Hyper Kidz or elected by a vote of other franchisees. If a franchisee participates in the advisory council, they are responsible for covering all expenses related to their participation. These expenses may include travel, lodging, and meals if attending council meetings requires travel.
This structure is fairly typical in franchising, where franchisors often seek franchisee input but maintain ultimate control over decision-making. Prospective Hyper Kidz franchisees should recognize that while they may have a voice through the advisory council, Hyper Kidz has the final say. Franchisees should budget for potential travel and related expenses if they wish to participate actively in the advisory council.