What is the set up fee for the Technology Fee for a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
d Business opens.
Item 6: OTHER FEES
| 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 Amounts due will be withdrawn by EFT from your designated bank account. |
| Brand Development Fee | 2% of Gross Sales | Payable at the same time and in the same manner as the Royalty Fee | You must contribute when we establish the Brand Development Fund. The Brand Development Fund is described in Item 11. |
| Local Marketing | 2% of Gross Sales | Must be spent monthly | You will spend this money directly with your local marketing vendors or us. All marketing must be approved by us before you use it. |
| Cooperative | As determined by | Not currently Assessed | Not Applicable |
| (3) | cooperative | ||
| Marketing | members | ||
| Technology Fee (4) | $290 per month plus $50 |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must pay a $500 set up fee for the Technology Fee. In addition to the set up fee, franchisees also pay $290 per month for the Technology Fee.
The Technology Fee is billed as arranged with Hyper Kidz. The FDD also states that Hyper Kidz has the right to periodically increase the technology fee, but this will not occur more frequently than annually. Hyper Kidz will provide franchisees with 60 days' prior written notice of any change to the technology fee.
It is important for prospective franchisees to consider the ongoing Technology Fee and potential increases when evaluating the overall cost of investing in a Hyper Kidz franchise. Understanding the specific technologies covered by this fee and their impact on business operations is also crucial. Franchisees should inquire about the factors that could lead to increases in the Technology Fee and budget accordingly.