What is the range for the estimated total initial investment for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
proved Suppliers |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Computer System | $7,500 to $20,000 | As arranged | As arranged | Approved |
| (9) | Suppliers | |||
| Permits and | $2,000 to $6,000 | As arranged | As arranged | Government |
| Licenses (10) | Agencies | |||
| Building Permits/ | $5,000 to $20,000 | As arranged | As arranged | Government |
| Impact Fees | Agencies | |||
| Professional Fees (11) | $5,000 to $20,000 | As arranged | As arranged | Attorney, Designated Accountant |
| Insurance (12) | $3,800 to $16,000 | As arranged | As arranged | Insurance Companies |
| Training Expenses | $1,000 to $5,000 | As arranged | As incurred | Airlines, Hotels, |
| (13) | Restaurants | |||
| Grand Opening (14) Advertising | $5,000 to $14,000 | As arranged | As arranged | Suppliers |
| Additional Funds – | $40,000 to $70,000 | As arranged | As incurred | Various |
| 3 Months (15) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the estimated total initial investment for a single Hyper Kidz franchise ranges from $751,633 to $1,800,333. This investment covers various expenses, including the initial franchise fee, rent, security deposits, designer and architect fees, leasehold improvements, signage, furniture, fixtures, equipment, initial inventory, computer systems, permits and licenses, professional fees, insurance, training expenses, grand opening advertising, and additional funds for the first three months of operation. These figures do not include payroll costs, Royalty Fees, Brand Development Fees, or other continuing fees payable to Hyper Kidz, nor do they account for any revenue the business may generate during its initial months.
The FDD also provides a separate estimate for multi-unit developers planning to open three Hyper Kidz locations. However, this estimate does not represent the initial investment for a single franchise unit. Instead, it reflects the higher costs associated with developing multiple locations simultaneously, such as the development fee and other expenditures for the first franchised business.
Prospective franchisees should carefully review each line item in the initial investment table with Hyper Kidz to understand the factors that could cause their actual costs to fall within or exceed the estimated range. Factors such as the size and location of the facility, the extent of leasehold improvements required, and the cost of labor and materials in their specific market area can significantly impact the total investment. It is also important to note that Hyper Kidz does not offer financing for any portion of the initial investment, and most expenses are non-refundable.