When is the initial franchise fee of $42,500 due for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
may be lower if you choose to lease some items.
Notes:
- 1. Initial Franchise Fee; Training Fee. You must pay us an initial franchise fee of $42,500, which is due in a lump sum when you sign the Franchise Agreement. The initial franchise fee is imposed uniformly on all franchisees and is not refundable under any circumstances. Training Fee: You must pay us a training fee equal to $7,500 when you schedule your trainees to attend our initial training program. We will train up to three people for the training fee. If you wish to send additional trainees to our initial training program, you must pay an additional training fee of $1,500 per person. You must also pay all expenses your trainees incur while attending training, including travel, lodging, meals and app
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the initial franchise fee of $42,500 is due in a lump sum when you sign the Franchise Agreement. This fee is imposed uniformly on all franchisees. The FDD also states that the initial franchise fee is non-refundable under any circumstances.
This means that a prospective Hyper Kidz franchisee must be prepared to pay the full $42,500 upfront when committing to the franchise. This is a standard practice in franchising, as the initial fee covers Hyper Kidz's initial costs of granting the franchise, including training and support.
It is important to note that this fee is non-refundable, so a potential franchisee should conduct thorough due diligence before signing the Franchise Agreement. This includes carefully reviewing the FDD, speaking with existing franchisees, and seeking professional advice from an attorney and financial advisor. Understanding the terms and conditions associated with the initial franchise fee is crucial before making a final decision.