For how long must a Hyper Kidz franchisee use the designated accountant?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
ur 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.
ARTICLE 13: ACCOUNTING, REPORTS AND FINANCIAL STATEMENTS
13.1 Record Keeping
You shall establish and maintain, at your own expense, a bookkeeping, accounting, record keeping and records retention system conforming to the requirements prescribed by us from time to time, which includes you obtaining and maintaining a point of sale or computer system ("computer system") that we specify or approve. Each transaction of the Hyper Kidz Business shall be processed on the computer system in the manner we prescribe. We shall have at all times the right to access the computer system and all data processed on the computer system with respect to the Hyper Kidz Business, including, without limitation, your membership and customer database. You shall take such action as may be necessary to provide such access to us, at your expense. You understand and agree that your membership and customer database will, at all times, remain our property and that you shall be an authorized user of such database during the term of this Agreement. In no event shall you retain a copy of such database after the termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
Based on the 2024 Hyper Kidz Franchise Disclosure Document, there is no mention of a requirement to use a designated accountant. The FDD does outline Hyper Kidz's requirements for record keeping, reporting, and audits.
Hyper Kidz requires franchisees to establish and maintain a bookkeeping, accounting, record keeping, and records retention system that conforms to Hyper Kidz's specifications. This includes obtaining and maintaining a point of sale or computer system that Hyper Kidz specifies or approves. Franchisees must process each transaction of the Hyper Kidz Business on this computer system as prescribed by Hyper Kidz, who retains the right to access the system and all data.
Hyper Kidz also requires franchisees to preserve all business, accounting, tax, inventory, financial, legal, personnel, operations, and other records relating to the Hyper Kidz Business for three years. Hyper Kidz has the right to inspect, audit, and copy these records during business hours, with or without prior notice. Franchisees must make these records available for examination at the Hyper Kidz Business location.
Since the FDD does not specify a designated accountant, a prospective franchisee should ask Hyper Kidz about any preferred accounting practices or software, and whether they recommend or require using a specific accounting firm.