Who approves the form, manner, and commencement date of a Kidokinetics regional advertising cooperative?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor will have the right, in Franchisor's discretion, to designate any geographical area for purposes of establishing a regional advertising and promotional cooperative ("Cooperative"), and to determine whether a Cooperative is applicable to the Kidokinetics Business. 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's 2024 Franchise Disclosure Document, the franchisor must approve the form, manner, and commencement date of any regional advertising and promotional cooperative. Kidokinetics retains the discretion to designate geographical areas for these cooperatives and determine their applicability to a franchisee's business.
If a cooperative is established, participation is mandatory for franchisees. Contributions to the cooperative are credited toward the franchisee's local marketing requirements, but these contributions cannot exceed the local marketing requirement unless a majority of the cooperative members vote to increase it. The cooperative is organized exclusively to manage regional advertising programs and develop standardized advertising materials, which are also subject to Kidokinetics's approval.
Franchisees must submit all advertising and promotional plans to Kidokinetics for approval, and Kidokinetics has 15 business days to approve or disapprove the submitted materials. Franchisees cannot use unapproved materials and must discontinue using any materials upon notice from Kidokinetics, even if previously approved. This level of oversight allows Kidokinetics to maintain brand consistency and control over marketing efforts across all franchise locations.