What outstanding payments must be made by the Hyper Kidz transferor and transferee before the transfer is approved?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
(b) you and the transferee (if it is then a franchisee of ours) must pay such Royalty Fees, Brand Development Fees, amounts owed for purchases by you (or such transferee) from us and our Affiliates, and all other amounts owed to us or our Affiliates which are then due and unpaid;
(e) you or the transferee must have paid us a transfer fee of Fifteen Thousand Dollars ($15,000) to cover our reasonable costs in effecting the transfer and in providing initial assistance to transferee;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, both the transferor (current franchisee) and the transferee (new franchisee) must settle all outstanding financial obligations to Hyper Kidz and its affiliates before a franchise transfer can be approved. Specifically, this includes any unpaid Royalty Fees, Brand Development Fees, and amounts owed for purchases made from Hyper Kidz or its affiliates.
In addition to settling outstanding debts, either the transferor or the transferee is responsible for paying a transfer fee of $15,000. This fee is intended to cover Hyper Kidz's costs associated with facilitating the transfer and providing initial support to the new franchisee.
These financial requirements ensure that Hyper Kidz maintains a sound financial relationship with its franchisees and that the new franchisee starts with a clean financial slate. Prospective franchisees should carefully review their financial records and agreements with Hyper Kidz to identify and resolve any outstanding balances before initiating a transfer. Failure to do so could delay or prevent the transfer from being approved.