Hyper Kidz Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$751,633 - $1,800,333
Franchise Fee
$21,250
Total US Locations
4
Business Summary
Hyper Kidz operates an interactive, indoor playground designed for children aged 6 months to 13 years, encouraging active and social play. Hyper Kidz locations offer unlimited play across three distinct zones: the Big Kid Zone for older children, the Kid Zone for younger kids, and the Mini Zone specifically for babies and toddlers. In addition to open play, Hyper Kidz businesses are also set up to host birthday parties.
Corporate History
Boomerang Franchise LLC was formed in Maryland on May 14, 2018, operating under its corporate name and as 'Hyper Kidz'. The company focuses on granting and supporting franchises for its Hyper Kidz indoor playground business. Boomerang Franchise LLC began offering franchises in October 2018, and has not offered franchises in any other line of business.
Financial Overview
Investment Range
$751,633 - $1,800,333
Franchise Fee (Low)
$21,250
Franchise Fee (High)
$42,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$500,000
Equipment Costs (High)
$1,300,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Boomerang Franchise LLC is highlighted as a special risk in the FDD, calling into question the franchisor's financial ability to provide services and support to franchisees. The auditor's report notes that management is required to evaluate if there are conditions raising substantial doubt about the company's ability to continue as a going concern. The balance sheets show a negative members' (deficit) of $225,182 in 2023 and $121,289 in 2022, indicating financial weakness. While net cash from operating activities was positive in 2023, the overall financial health raises concerns about the company's stability.
Financing Details
Hyper Kidz does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for the franchisee.
Performance Metrics
Total US Locations
4
Franchised Units
2
Corporate Units
2
Avg Square Footage
13,500
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Boomerang Franchise LLC has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Boomerang Franchise LLC has no bankruptcy history to disclose. Item 4 of the FDD states that no bankruptcy information is required to be disclosed in the document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Hyper Kidz franchisees must have substantially complied with the existing Franchise Agreement throughout its initial term and be in full compliance at the time of expiration. They must have the right to maintain possession of an approved location for the renewal term, and the facility must be remodeled or redecorated to meet the current system image. Franchisees must have satisfied all financial obligations, paid the Successor Agreement Fee, and not be in default of any agreement with the franchisor. They are also required to provide timely written notice of their intent to renew, sign a new Successor Agreement, and comply with current qualifications and training requirements, as well as sign a general release. The franchisor reserves the right not to renew if they decide to withdraw from the franchisee's market area.
Training & Support Program
Franchisor Assistance
Before opening, Hyper Kidz assists with approving the proposed site and reviewing lease or purchase agreements. The franchisor provides design specifications for the business layout and reviews construction plans. Franchisees receive initial training for up to three people in operating a Hyper Kidz business, typically at the affiliate's location in Columbia, Maryland. A representative also provides up to 14 days of on-site assistance during the grand opening period. The franchisor consults on developing the grand opening advertising campaign and may recommend or set maximum prices for services. Ongoing support includes guidance on operating procedures, purchasing, local marketing, and administrative matters through manuals, bulletins, and consultations. The franchisor maintains a Brand Development Fund for national advertising and may hold franchisee meetings. Hyper Kidz controls all internet, website, and social media activities, providing branded pages and access to a designated computer system for sales and operations monitoring.
Initial Training Hours
40
Training Location
Columbia, MD
Ongoing Support
After opening, Hyper Kidz provides ongoing guidance to franchisees regarding system specifications, operating procedures, approved suppliers, local marketing and promotional programs, and administrative and management procedures. This support is delivered through the Operations Manual, bulletins, written reports, telephonic consultations, and in-person consultations. Franchisees can request additional on-site training for a fee. The franchisor maintains a Brand Development Fund for national advertising and public relations campaigns, and franchisees must participate in these programs. The franchisor may also hold franchisee meetings. Hyper Kidz controls all internet, website, and social media initiatives, providing branded social media pages and requiring franchisees to use a specified computer system for operations and data sharing. The franchisor also provides indemnification for certain claims related to the use of its trademarks.
Franchise Requirements
Ideal Candidate Profile
Hyper Kidz emphasizes that both franchisees and their employees must pass a rigorous screening process. The franchisor explicitly states that individuals convicted of a sex crime or a crime against a child, or those who do not meet other specified requirements, cannot be employed. If a franchisee does not participate in daily operations, their General Manager must be approved by Hyper Kidz, complete initial training, and pass a rigorous screening test.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
Hyper Kidz grants a Designated Territory with a minimum size of 65,000 children aged 13 and under, or a 15-mile driving distance radius around the approved location, whichever comes first. This Designated Territory is described using street, municipal, or other boundaries, and may be depicted on a map attached to the Franchise Agreement.
Staffing Notes
Hyper Kidz recommends that franchisees or their principals actively participate in the business, but if they do not, a General Manager must be hired to dedicate full-time effort to operations. The General Manager must be approved by Hyper Kidz, satisfactorily complete the initial training program, and pass a rigorous screening test. All employees hired by the franchisee must also pass a rigorous screening process, and Hyper Kidz prohibits the employment of anyone convicted of a sex crime or a crime against a child. The Operations Manual outlines specific job descriptions for roles like General Manager, Floor Associate, Front Desk/Guest Services, Birthday Party Host, and Equipment Maintenance Associate. It also details procedures for recruitment, selection, orientation, training, and establishing personnel policies, including a dress code and discipline guidelines. Franchisees are responsible for hiring and managing their staff, and for establishing an employee training program that meets franchisor standards. Hyper Kidz may require confidentiality and non-competition agreements from key employees.