What is the initial franchise fee for each Hyper Kidz Business developed under the development agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ION 2: DEVELOPMENT FEE; INITIAL FRANCHISE FEE**
In consideration of the Development Rights granted herein, you shall pay to us a development fee of ___________________________ Thousand Dollars ($____________), which is calculated as one hundred percent (100%) of the initial franchise fee for the first Hyper Kidz Business to be developed hereunder, plus a deposit equal to fifty percent (50%) of the initial franchise fee multiplied by the number of additional Hyper Kidz Businesses to be developed pursuant to this Agreement (the "Development Fee"). The Development Fee is payable in a lump sum upon execution of this Agreement and is not refundable under any circumstances.
The initial franchise fee for each Hyper Kidz Business to be developed hereunder shall be Thirty-Nine Thousand Five Hundred Dollars ($39,500).
We expect that you
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the initial franchise fee for each Hyper Kidz Business to be developed under a development agreement is $39,500. When a franchisee signs the Development Agreement for their first Hyper Kidz Business, a portion of the Development Fee will be applied to cover the initial franchise fee in full.
For each additional Hyper Kidz Business that the franchisee develops, a pro rata portion of the Development Fee will be applied towards the initial franchise fee. The remaining balance of the initial franchise fee for each additional location is $19,750, which is payable in a lump sum upon the execution of each Franchise Agreement.
Prospective franchisees should note that the Development Fee is calculated as 100% of the initial franchise fee for the first Hyper Kidz Business, plus a deposit equal to 50% of the initial franchise fee multiplied by the number of additional Hyper Kidz Businesses to be developed. This fee is payable in a lump sum upon execution of the Development Agreement and is non-refundable under any circumstances. Franchisees must also sign the Franchise Agreement as a principal and maintain control over each entity operating a Hyper Kidz Business.