Is Hyper Kidz required to be one of the designated suppliers for the initial inventory of the Hyper Kidz Business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon completion of the development of the Hyper Kidz Business, you agree to stock the initial inventory of the Hyper Kidz Business to our specifications and standards. The initial inventory of the Hyper Kidz Business will include your purchase of equipment and products from our designated suppliers, which may include us and/or our Affiliates.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees are required to stock an initial inventory that meets Hyper Kidz's standards and specifications. This inventory includes equipment and products that franchisees must purchase from designated suppliers. The document specifies that Hyper Kidz or its affiliates may be among these designated suppliers.
This means that as a franchisee, you may be required to purchase your initial inventory, including equipment and products, from suppliers that Hyper Kidz designates. Hyper Kidz itself or its affiliates could be among these suppliers. This requirement ensures that all Hyper Kidz locations maintain a consistent standard in their products and equipment.
While Hyper Kidz may be a designated supplier, franchisees should confirm whether Hyper Kidz will profit from these required purchases. It is also important to understand the range of products and equipment that must be purchased from designated suppliers as part of the initial inventory, and if there are alternative approved suppliers.