What does Kidokinetics' approval process generally focus on?

According to Kidokinetics' 2024 Franchise Disclosure Document, if a franchisee wants to use a product or service that Kidokinetics has not already approved, they must submit sufficient information for Kidokinetics to determine if the item or service complies with their standards. The franchisee is responsible for reimbursing Kidokinetics for all reasonable expenses connected with this determination. Kidokinetics will then decide within a reasonable time, typically 30 days, whether the franchisee can purchase or lease the items or services from the supplier. However, Kidokinetics can withdraw its approval later based on the supplier's performance or changes in their standards.

Kidokinetics' approval process generally focuses on the supplier's dependability, general reputation, and ability to provide sufficient quantities of products or services. It also considers the prices and quality of the products or services. Kidokinetics keeps its specific standards, specifications, and other criteria for supplier or distributor approval confidential, as they have been developed through extensive work and time by Kidokinetics, its principals, and its affiliates.

Kidokinetics may limit the number of potential suppliers it considers for approval. For some product or service categories, Kidokinetics may designate a third party or itself as the exclusive supplier. This means franchisees may have limited options for sourcing certain items necessary to operate their Kidokinetics business. Franchisees must operate their Kidokinetics business according to Kidokinetics' system and specifications, including purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics franchise under their specifications.