Will Hyper Kidz provide assistance with the opening of my Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
For the opening of your Hyper Kidz Business, we will provide you with one of our trained representatives. The trained representative will provide on-site pre-opening and opening training, supervision, and assistance to you for up to 14 days around your Hyper Kidz Business's opening. If you request additional days of on-site opening assistance, you must pay our then-current per diem fee (currently $250) for each additional day of opening assistance provided, and you must reimburse our representative's
expenses for the additional days, including travel, lodging and meals. If you are opening your second (or later) Franchised Business, we have the right to reduce the duration of our representative's visit or to not provide opening assistance.
If, during the term of your Franchise Agreement, you request that we provide additional training on-site at your Hyper Kidz Business, or if we determine that you need additional training or assistance (such as if you incur unsatisfactory or below average ratings after an inspection), you must pay our then-current per diem fee (currently $250) for each trainer we provide, and you must reimburse us for any expenses our trainers incur, such as costs of travel, lodging, and meals.
We do not anticipate holding any refresher training programs.
We have the right to hold a meeting or convention of our franchisees, which may be held on a regional or national basis. We may specify that attendance at any franchisee meeting is mandatory for you and/or your General Manager unless the absence is excused by us. We may use a franchisee meeting to discuss new products or services, to discuss concerns with our franchisees, and/or to provide additional training. We will determine the location of the franchisee meeting, but we will not designate an unreasonably expensive location. We do not anticipate charging a fee for the franchisee meeting, but you must pay all expenses that you and your attendees incur, including travel, lodging, meals and applicable wages.
Operations Manual
The table of contents to the Operations Manual is attached hereto as Exhibit E. The Operations Manual includes approximately 96 pages.
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
Except as listed below, Boomerang Franchise LLC is not required to provide you with any assistance.
Pre-Opening Obligations
Multi-Unit Development Agreement: Before you begin operating under the Multi-Unit Development Agreement, we will grant to you exclusive rights to a Development Area within which you will assume the responsibility to establish and operate an agreed-upon number of Hyper Kidz Businesses under separate Franchise Agreements (Multi-Unit Development Agreement – Section 1.1).
Franchise Agreement: Before you open your Hyper Kidz Business, we will:
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- Approve of the site you propose, if it meets our requirements. Once the location for your Franchised Business has been approved by us, we will designate the boundaries of your Designated Territory. (Franchise Agreement – Section 4.1.)
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- Approve a lease or purchase agreement for the approved site, if the lease or purchase agreement meets our criteria. We may also assist you in negotiating the lease or purchase agreement. If we do not notify you of our approval or disapproval a proposed lease or purchase agreement within 15 days, it shall be deemed approved. At our request, you must have your landlord sign a Collateral Assignment of Lease. (Franchise Agreement – Section 4.2. and Attachment 6)
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- Furnish our design specifications, which include our requirements for design, decoration, layout, equipment, furniture, fixtures, color scheme, signs and other operating materials needed for the Hyper Kidz Business to open. (Franchise Agreement – Section 4.3.)
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- Review your construction plans. Our review of your construction plans is not meant to assess compliance with any applicable laws, ordinances, or building codes. Our review of your proposed plans is only to verify that your Hyper Kidz Business will be built out according to our specifications for design and appearance. (Franchise Agreement – Section 4.3.)
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- Loan you for your sole use one copy of the Manual for the term of the Franchise Agreement. We may provide the Manual electronically. (Franchise Agreement – Section 5.5.)
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- Train up to three people in the operation of your Hyper Kidz Business. We describe this training later in this Item. We will also provide one of our representatives to assist with opening your Hyper
Kidz Business for up to 14 days. If you request additional days of opening assistance, you must pay our then-current per diem fee for each additional day of assistance and you must reimburse our representative's additional expenses, including travel, lodging and meals. If you are opening your second or later Hyper Kidz Business, we have the right to reduce the amount of opening assistance provided or to not provide opening assistance. (Franchise Agreement – Section 5.1.)
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- Consult with you to develop the grand opening advertising campaign you must conduct for the Hyper Kidz Business. (Franchise Agreement – Section 4.8.)
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- Subject to applicable law, Franchisor may recommend or set maximum prices for services and products offered by Franchisee, which may vary depending on geographic and other market conditions. Franchisee acknowledges that Franchisor has made no guarantee or warranty that offering services or products at any particular price will enhance Franchisee's sales or profits. (Franchise Agreement – Section 11.13.)
Continuing Obligations
Multi-Unit Development Agreement: During the term of the Multi-Unit Development Agreement:
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- We will review site survey information on sites you select for conformity to our standards and criteria for potential sites and, if the site meets our criteria, approve the site for a Hyper Kidz Business. We will approve sites for future/additional units under a Multi Unit Agreement using our then current site criteria. (Multi-Unit Development Agreement – Section 8.1).
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- We will provide you with standard specifications and layouts for building and furnishing the Hyper Kidz Business (Multi-Unit Development Agreement – Section 8.2).
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- We will review your site plan and final build-out plans and specifications for conformity to our standards and specifications (Multi-Unit Development Agreement – Section 8.3).
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- We will provide other resources and assistance as may be developed and offered to our multi-unit developers (Multi-Unit Development Agreement – Section 8.4).
Franchise Agreement: During the operation of your Hyper Kidz Business, we will do the following:
purchasing inventory and supplies, and completing our initial training program. You must open your Hyper Kidz Business and begin business not later than 12 months after you sign the Franchise Agreement. If you are unable to open your Hyper Kidz Business within the required timeframe, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. You may not open your Hyper Kidz Business for business until we have approved you to do so. (Franchise Agreement 4.7)
If you are a Multi-Unit Developer, you must sign your first Franchise Agreement at the same time you sign the Multi-Unit Development Agreement. The typical length of time between the signing of the Franchise Agreement and the opening of your first Franchised Business is the same as for an individual franchisee. Each additional Franchised Business you develop must be opened according to the terms of your minimum performance schedule. (Multi-Unit Development Agreement 3.2)
Grand Opening Advertising Campaign (Franchise Agreement 4.8)
You must spend at least $5,000 to conduct a grand opening advertising campaign to promote the opening of your Hyper Kidz Business. Your grand opening campaign must include the elements we require, such as direct mail campaigns and giveaways. We must approve of your grand opening advertising campaign, and your campaign must be conducted in the period that includes 12 weeks before and 12 weeks after opening of your Hyper Kidz Business.
We reserve the right to collect some or all of your grand opening funds and/or your Local Advertising expenditure and implement grand opening campaign activities and/or Local Advertising on your behalf.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz will provide assistance with the opening of your Hyper Kidz Business. Before opening, Hyper Kidz will approve the site if it meets their requirements and approve the lease or purchase agreement if it meets their criteria. They will furnish design specifications and review construction plans to ensure they meet Hyper Kidz's standards for design and appearance. Hyper Kidz will loan you a copy of the manual and train up to three people in the operation of the business.
For the opening of your Hyper Kidz Business, Hyper Kidz will provide a trained representative for on-site pre-opening and opening training, supervision, and assistance for up to 14 days. If you require additional assistance beyond the initial 14 days, you will be charged a per diem fee, currently at $250 per day, plus reimbursement for the representative's expenses, including travel, lodging, and meals.
Hyper Kidz will consult with you to develop a grand opening advertising campaign. You are required to spend at least $5,000 on this campaign, which must include elements required by Hyper Kidz, such as direct mail campaigns and giveaways. The campaign must occur within the 12 weeks before and 12 weeks after the opening of your Hyper Kidz Business. Note that if you are opening your second or later Hyper Kidz Business, Hyper Kidz has the right to reduce or eliminate the opening assistance provided.