Are the trainee's expenses, such as travel and lodging, included in the Hyper Kidz training fee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
er if you choose to lease some items.
Notes:
- 1. Initial Franchise Fee; Training Fee. You must pay us an initial franchise fee of $42,500, which is due in a lump sum when you sign the Franchise Agreement. The initial franchise fee is imposed uniformly on all franchisees and is not refundable under any circumstances. Training Fee: You must pay us a training fee equal to $7,500 when you schedule your trainees to attend our initial training program. We will train up to three people for the training fee. If you wish to send additional trainees to our initial training program, you must pay an additional training fee of $1,500 per person. You must also pay all expenses your trainees incur while attending training, including travel, lodging, meals and applicable wages. The training fee is not refundable.
- 2. Rent. If you do not own adequate property, you must lease the property for your business. The typical size for a Hyper Kidz Business is 11,000 to 16,000 square feet and is located in a commercial, retail or light industrial setting.
Landlords may vary the base rental rate and charge rent based on a percentage of gross sales.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the $7,500 training fee does not include expenses incurred by the trainees such as travel, lodging, meals, and wages. This fee covers the training of up to three people. If a franchisee wishes to send more than three people to the initial training program, they must pay an additional training fee of $1,500 per person.
Item 7 of the FDD includes an estimated cost for training expenses, separate from the training fee. This estimate ranges from $1,000 to $5,000, and covers the out-of-pocket costs associated with attending the initial training program, including travel, lodging, meals, and applicable wages for the first three trainees. The lower end of the estimate assumes that the trainees live within driving distance of the training facility, while the higher end assumes that additional travel is required.
In summary, while Hyper Kidz charges a training fee, franchisees should be aware that they are also responsible for covering all travel, lodging, and wage expenses for their trainees. These costs can vary significantly depending on the location of the training facility and the number of trainees attending the program.