Does Hyper Kidz reserve the right to require franchisees to follow their fiscal year end?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
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 d
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Hyper Kidz does not explicitly state that franchisees must adhere to a specific fiscal year end. However, the FDD does state that Hyper Kidz requires franchisees to maintain a bookkeeping, accounting, record keeping, and records retention system that conforms to Hyper Kidz's requirements.
The Hyper Kidz franchise agreement also states that franchisees must provide Hyper Kidz with access to their computer system and all data processed on it, including membership and customer databases. Hyper Kidz retains ownership of the membership and customer database.
While the FDD does not explicitly require franchisees to adopt Hyper Kidz's fiscal year, the control Hyper Kidz exerts over accounting systems and data access suggests they could potentially influence or require alignment with their fiscal year-end for reporting and operational purposes. A prospective franchisee should clarify this point with Hyper Kidz during their due diligence.