What topics are covered in Article 10 of the Hyper Kidz Franchise Agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
rued to prohibit you, any of your Principals, or any member of your or their immediate family from having a direct or indirect ownership interest in any Hyper Kidz Business Franchise Agreement for the operation of any Hyper Kidz Business, or any entity owning, controlling or operating a Hyper Kidz Business, or from providing services to any such Hyper Kidz Business pursuant to other agreements with us.
ARTICLE 10: FEES
10.1 Initial Franchise Fee; Training Fee
- 10.1.1 You agree to pay to us upon execution of this Agreement an "Initial Franchise Fee" in the amount of Forty Two Thousand Five Hundred Dollars ($42,500), less any amount credited toward such Initial Franchise Fee pursuant to the terms of a multi-unit development agreement between you (as multi-unit developer) and us. The Initial Franchise Fee shall be fully earned by us upon
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Article 10 of the franchise agreement pertains to fees. Specifically, it details the initial franchise fee, the training fee, and the royalty fee.
The initial franchise fee is $42,500, which is due upon the execution of the agreement. This fee is considered fully earned by Hyper Kidz once the agreement is signed and is non-refundable. Additionally, there is a training fee of $7,500, which covers the cost for up to three trainees to attend the initial training program. This training fee is payable when the franchisee schedules their attendance and is also non-refundable.
These fees are standard in the franchise industry, as they compensate the franchisor for granting the franchise rights, providing initial training, and transferring their business knowledge. Prospective franchisees should carefully consider these costs and ensure they have sufficient capital to cover them, as they are required upfront and are non-refundable.