Hi-5 ABA Franchise

Financing Details

Hi-5 ABA, Inc. does not directly offer financing to franchisees and does not guarantee notes, leases, or other obligations. However, its affiliate, Hi-5 Processing, Inc., which serves as the designated billing vendor, may offer funds as advances against the franchisee's outstanding claims for services. These advances are typically for meeting obligations like payroll and working capital. The current policy allows advances of up to $50,000, secured by qualified unpaid claims with a 75% loan-to-value ratio (meaning $60,000 in qualified claims would support $45,000 in advances). Hi-5 Processing does not charge interest on these advances unless the franchisee defaults on repayment, in which case a 1.5% monthly interest may apply. The franchisor, Hi-5 ABA, Inc., may also contribute to these advances by deferring the collection of royalties owed to them. These deferred royalties become part of the advances and are due within a maximum of one year, remaining the franchisee's liability regardless of claim collection. Franchisee owners are required to sign a personal guarantee for all obligations to both Hi-5 ABA, Inc. and Hi-5 Processing.

Litigation Summary

Hi-5 ABA, Inc. has one pending lawsuit. This case, filed on April 8, 2016, involves its affiliate, Cornerstone Investments Ghana Ltd. (CIG), where David Maddox, a co-founder and CEO of Hi-5 ABA, is the Managing Director. CIG initiated an action in Ghana against New Age Real Estate Developers Ltd. (New Age) concerning a lease agreement for crushing equipment. New Age then filed a counterclaim against CIG, David Maddox, and another individual, alleging deceit related to the leased equipment. New Age is seeking to invalidate the lease, recover $145,000 plus interest, restrict the sale of the equipment, and obtain attorney fees. CIG and Mr. Maddox deny these allegations and have filed their own counterclaims. A principal of New Age is now deceased, and the case remains ongoing without resolution.

Renewal Conditions

To renew their Hi-5 ABA franchise, franchisees must provide written notice at least four months (but not more than twelve months) before the current agreement ends. They must have fulfilled all financial obligations to Hi-5 ABA, Inc. and its affiliates, and be in material compliance with all terms of the franchise agreement and other contracts. Franchisees will need to sign a general release of claims (with exceptions for non-releasable claims) and may be required to sign a new franchise agreement, which could include different terms like higher fees. They must also meet the franchisor's then-current qualification and training requirements.

Staffing Notes

Hi-5 ABA, Inc. requires franchisees to employ at least one Board Certified Behavior Analyst (BCBA) who is licensed in their operating state, along with additional professional technicians. The number of BCBAs and technicians is determined by the franchisee based on client needs and professional standards. All BCBAs and technicians must meet qualifications acceptable to Hi-5 ABA, Inc. and complete required training. Franchisees must ensure staff are licensed, certified, and pass background checks, adhering to industry regulations and professional ethical conduct. Staff must be on duty during regular business hours (Monday-Friday, 9:00 a.m. to 5:00 p.m.) for administrative purposes. The Operating Principal or at least one BCBA must be available by phone to communicate with technicians and clients whenever services are being provided.