factual

Against what is the Kidokinetics cooperative contributions credited?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

If a Cooperative is established applicable to the Kidokinetics Business, Franchisee must participate in the Cooperative. Cooperative contributions will be credited towards the Local Marketing discussed in Section 12.2 above. Cooperative contributions will not exceed the Local Marketing Requirement unless a majority of the Cooperative votes to increase that requirement. The following provisions will apply to each Cooperative:

  • 12.3.1. Each Cooperative will be organized and governed in a form and manner, and will commence operation on a date, approved in advance by Franchisor;
  • 12.3.2. Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to Franchisor's approval, standardized advertising materials for use by the members in local advertising;
  • 12.3.3. No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without Franchisor's prior approval. All such plans and materials must be submitted to Franchisor for prior review and approval;
  • 12.3.4. The Cooperative's activities will be agreed upon by a majority vote of the member franchisees in the Cooperative. All Cooperative contributions will be credited against the Local Marketing Requirement. The Cooperative may, by the majority vote of its members, require a Cooperative contribution in excess of the Local Marketing requirement;

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics' 2024 Franchise Disclosure Document, if Kidokinetics establishes a regional advertising and promotional cooperative, franchisee contributions to the cooperative will be credited towards the Local Marketing Requirement. The cooperative contributions will not exceed the Local Marketing Requirement unless a majority of the Cooperative votes to increase that requirement.

Each cooperative will be organized and governed in a form and manner, and will commence operation on a date, approved in advance by Kidokinetics. These cooperatives are formed for the exclusive purpose of administering regional advertising programs and developing standardized advertising materials, subject to Kidokinetics' approval, for use by the members in local advertising.

No promotional or advertising plans or materials may be used by a cooperative or furnished to its members without Kidokinetics' prior approval. All such plans and materials must be submitted to Kidokinetics for prior review and approval. The cooperative's activities will be agreed upon by a majority vote of the member franchisees in the Cooperative. The cooperative may, by the majority vote of its members, require a cooperative contribution in excess of the Local Marketing requirement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.