According to Kidokinetics, what must franchisees do regarding the System and specifications?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
SERVICES
You must operate your Kidokinetics Business according to our System and specifications. This includes purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics Franchise under our specifications, which may include purchasing these items from: (i) our designees; (ii) approved suppliers; and/or (iii) us or our affiliates. You must not deviate from these methods, standards and specifications without our prior written consent, or otherwise operate in any manner which reflects adversely on our Marks or the System.
Our confidential franchise operations manual ("Franchise Operations Manual") states our standards, specifications and guidelines for all products and services we require you to obtain in establishing and operating your Kidokinetics Franchise and approved vendors for these products and services. We will notify you of new or modified standards, specifications and guidelines through periodic amendments or supplements to the Franchise Operations Manual or through other written communication (including electronic communication such as email or through a system-wide intranet).
You must purchase, install, maintain in sufficient supply and use equipment, signs and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing.
Many of the products, supplies and services discussed above may only be purchased from approved suppliers in accordance with the Franchise Operations Manual. We will provide you with a list of these items and services and their approved suppliers, which may include or be limited to us or an affiliate. We are approved suppliers of the proprietary business management software. We or our affiliate are the exclusive provider of the Enhanced Business Coaching and Training Services for your Kidokinetics Businesses and of the marketing materials and services including the Initial Marketing Package. We are also an approved supplier of logoed items, such as uniforms, packaging supplies and other items bearing the Marks, but we may approve alternate suppliers in our discretion.
If you want to use any item or service in establishing or operating your Kidokinetics Business that we have not approved (for items or services that require supplier approval), you must first send us sufficient information, specifications or samples for us to determine whether the item or service complies with our standards and specifications or whether the supplier meets our approved supplier criteria. You must reimburse us for all of our reasonable expenses in connection with determining whether we will approve an item, service or supplier. We will decide within a reasonable time (usually 30 days) after receiving the required information whether you may purchase or lease the items or services or if you may purchase from the supplier. Our approval may later be withdrawn based on the supplier's performance, changes in our specifications, standards or requirements, or for other reasons.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must operate their Kidokinetics business according to the Kidokinetics System and specifications. This includes purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics franchise under their specifications. These items may be purchased from Kidokinetics' designees, approved suppliers, or directly from Kidokinetics or its affiliates. Franchisees must not deviate from these standards without prior written consent from Kidokinetics, and they must operate in a manner that does not reflect negatively on the Kidokinetics marks or the System.
The confidential franchise operations manual contains the standards, specifications, and guidelines for all products and services franchisees are required to obtain. Kidokinetics will notify franchisees of any new or modified standards through amendments or supplements to the manual or via written communication. Franchisees must purchase, install, maintain, and use equipment, signs, and supplies that conform to the standards and specifications described in the Franchise Operations Manual or in writing.
Kidokinetics franchisees must use the designated computer hardware and software, including the point-of-sale system, to operate their business. They must obtain the necessary computer hardware, software licenses, maintenance, and support services from specified suppliers. Franchisees are also required to pay the current fees to approved suppliers for technology business solutions, such as phone systems, scheduling software, and bookkeeping services, as outlined in the Franchise Operations Manual. Additionally, franchisees must obtain and maintain specific insurance coverage, including comprehensive general liability insurance, umbrella excess liability coverage, automobile insurance, worker's compensation insurance, crime insurance, sexual abuse and molestation coverage, accident policy, and worker's compensation with specified limits. The insurance company must be authorized and approved by Kidokinetics with a rating of "A" or better by A.M. Best & Company, Inc.