Under what conditions can Hyper Kidz step in and manage a franchisee's Hyper Kidz business?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fees (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | 10% of Gross Sales, plus expenses | If incurred | We have the right to step in and manage your Franchised Business in certain situations, such as your death, disability or prolonged absence. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz has the right to step in and manage a franchisee's business under specific circumstances. These include the franchisee's death, disability, or prolonged absence. If Hyper Kidz does take over management, the franchisee will be charged a management fee.
The management fee is 10% of Gross Sales, in addition to expenses incurred by Hyper Kidz while managing the business. This means that if a franchisee is unable to manage their Hyper Kidz location due to unforeseen circumstances, they will incur additional costs on top of any existing financial obligations.
This provision is important for prospective franchisees to consider, as it outlines the conditions under which Hyper Kidz can assume control of the business and the associated costs. Franchisees should ensure they have plans in place to cover potential scenarios such as disability or prolonged absence to avoid triggering this clause and incurring the management fee.