Is Kidokinetics allowed to include 'Franchises Available' in advertisements funded by the Brand Development Fund?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
We will not use the Brand Development Fund Contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics retains the right to include a notation such as "Franchises Available" in its advertising or on its website, even though the Brand Development Fund will not be used primarily to solicit franchise sales.
This means that while the main purpose of the Brand Development Fund is to promote the Kidokinetics brand and services, Kidokinetics can still use advertising funded by the Brand Development Fund to attract potential franchisees. This could be seen as a benefit to franchisees as it helps grow the overall brand while also subtly promoting franchise opportunities.
However, the FDD also states that Kidokinetics has complete discretion on how the Brand Development Fund will be utilized and is not obligated to spend any amount on advertising in the geographical area where a franchisee is located. Furthermore, Kidokinetics does not guarantee that advertising expenditures from the Brand Development Fund will benefit any franchisee directly or on a pro rata basis. This implies that franchisees may not have direct control over how the fund is spent and may not see immediate benefits in their specific location.