Is Kidokinetics an approved supplier of logoed items?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics is an approved supplier of logoed items such as uniforms and packaging supplies. However, the document also states that Kidokinetics may approve alternate suppliers for these items at its discretion. This means that while franchisees can purchase logoed items directly from Kidokinetics, there may be other approved vendors to choose from.

This arrangement gives Kidokinetics some control over branding and quality, as it can ensure that all logoed items meet its standards. It also allows for flexibility, as franchisees may have the option to source these items from other suppliers if approved by Kidokinetics. This approval process requires the franchisee to submit sufficient information, specifications, or samples for Kidokinetics to determine whether the item or service complies with their standards. The franchisee must also reimburse Kidokinetics for all reasonable expenses connected with this determination.

Kidokinetics's approval process focuses on the supplier's dependability, reputation, ability to supply sufficient quantities, and the product's price and quality. However, Kidokinetics does not make its specific standards and criteria available to franchisees or approved suppliers, and these standards may change at Kidokinetics's discretion. This means that franchisees need to stay updated with any changes in the approved suppliers or standards to avoid violating the franchise agreement.

It is important to note that Kidokinetics can derive income from franchisee purchases from approved suppliers, including rebates. During the fiscal year ended December 31, 2023, Kidokinetics derived $511,370 in revenue from required franchisee purchases in the form of sales from shirts and other apparel, representing 14.5% of their total revenue of $3,509,206. This highlights the potential financial benefit Kidokinetics receives from these supplier arrangements.