Under what condition will the Hyper Kidz Fund be terminated?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) We retain the right, in our sole discretion, to terminate the Fund.
The Fund shall not be terminated until all monies in the Fund have been expended for advertising and promotional purposes.
If we terminate the Fund, we shall have the right to reinstate such Fund.
Any reinstated Fund shall be maintained and operated as described in this Section 12.1.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Hyper Kidz retains the right to terminate the advertising fund at its sole discretion. However, the fund will not be terminated until all the money within it has been spent on advertising and promotional purposes.
Even if Hyper Kidz terminates the fund, they retain the right to reinstate it later. If reinstated, the fund will be maintained and operated as previously described in the relevant section of the Franchise Agreement.
This means that Hyper Kidz franchisees contribute to a fund used for marketing and advertising, but Hyper Kidz ultimately decides when and how those funds are spent. While the fund must be depleted on advertising before termination, Hyper Kidz has significant control over its existence and use.