When is the Royalty Fee due for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fees (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (2) | 6% of Gross Sales | Payable on Tuesday of each week (or the next business day if any Tuesday is not a business day) | Royalty Fees are calculated based on Gross Sales for the previous week ending Sunday. Amounts due will be withdrawn by EFT from your designated bank account. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the Royalty Fee is due on Tuesday of each week, or the next business day if Tuesday is not a business day. This royalty payment is calculated as 6% of Gross Sales from the previous week, which ends on Sunday. Hyper Kidz will withdraw the Royalty Fee from the franchisee's designated bank account through electronic funds transfer (EFT).
Each Monday, the franchisee must report their Gross Sales to Hyper Kidz for the week that ended the previous Sunday. If a franchisee fails to report their Gross Sales, Hyper Kidz has the right to debit the franchisee's account for 120% of the amount of the last Royalty Fee and Brand Development Fee that was debited.
If the amount debited is less than what is actually owed, Hyper Kidz will debit the account for the remaining balance once the true Gross Sales are determined. Conversely, if the amount debited is greater than what is owed, Hyper Kidz will credit the excess amount against the next payment due. This system ensures that royalty payments are consistently collected and reconciled based on actual sales figures.