What assistance does the KIDOLINK software provide to a Kidokinetics franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Agreement is to implement such Computer Systems, including all software and hardware, Franchisor requires.
- C. Franchisor's affiliate has developed the KIDOLINK business management software, for which Franchisor has the contractual right to sublicense, to be utilized by Franchisee in connection with the Franchised Business ("KIDOLINK Software"). The KIDOLINK software provides assistance with the management of client leads and data, sales records and documentation, inventory control, marketing efforts, administrative matters, and customer service for Franchisee and Franchisee's employees.
- D. Franchisor may also, from time to time, whether itself or through its designees develop customized software for Franchisee's use in connection with the Franchised Business ("Customized Software"). Franchisee may, at the discretion of Franchisor, be required to purchase and use the Customized Software. Whether Franchisee is required to, or otherwise elects to, use the Customized Software, Franchisee agrees to abide by the terms of this Agreement with regards to any Customized Software. The KIDOLINK Software and Customized Software will be referred to collectively in this Agreement as the "Proprietary Software."
- E. Guarantors agree to personally, and jointly and severally, guaranty Franchisee's obligations and covenants under this Agreement and to be bound by each provision as though each were the Franchisee.
- F. Now, the parties desire to define the terms and conditions on which Franchisor will grant use of the KIDOLINK Software and Customized Software to Franchisee in accordance with the provisions of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. KIDOLINK SOFTWARE
A. GRANT OF USE
- (a) License Grant. Franchisor grants to Franchisee a personal, limited, non-assignable, non-transferrable, non-exclusive license to use the KIDOLINK Software during the term of the Franchise Agreement, subject to the terms and conditions set forth in this Agreement.
- (b) No Customization. Franchisor prohibits Franchisee from customizing or authorizing customizations of the KIDOLINK Software
- (c) Scope of Use. Franchisee may use the KIDOLINK Software solely for Franchisee's internal needs in the operation of Franchised Business as a franchisee of Franchisor and will not make the KIDOLINK Software available to or permit the use thereof by any person or entity except to the extent and in the manner permitted under Subsections 1.A.(d) and (e) below.
- (d) Limited Right to Copy. Franchisee may not grant access, copy or allow copies of the KIDOLINK Software or any other proprietary information to be made, except to the extent necessary to exercise the use granted hereby and for back-up and archival purposes.
- (e) No Reverse Engineering or Modifications. Franchisee agrees not to reverse engineer, decompile or disassemble the KIDOLINK Software or any part of the KIDOLINK Software, nor will Franchisee change, modify or create derivative works from the KIDOLINK Software.
- (f) Ownership. Franchisee acknowledges that Franchisee has no ownership rights in the KIDOLINK Software
- (g) Other Rights. Franchisee has no other rights in the KIDOLINK Software except those rights expressly granted by this Agreement.
- (h) Third-Party Access. Franchisee must not make the KIDOLINK Software available to any third party unless required by Franchisor at its sole discretion.
- (i) Updating to Current Version. Franchisee must only use current versions of the KIDOLINK Software; provided, ,however, Franchisee may use prior versions if prior versions are necessary to support the current version. Current version may include an upgrade to a version requiring an additional fee after the effective date of this Agreement.
B. FEES
- (a) Initial KIDOLINK Software License Fee. Franchisee must pay to Franchisor $3,000 for Franchisee's first Franchised Business and $1,000 for Franchisee's second or greater Franchised Business as a one-time Initial Software License Fee, due on the execution of this Agreement (unless), for the use of the KIDOLINK Software.
- (b) Monthly KIDOLINK Software License Fee. Beginning in the first month Franchisee beings to operate the Franchised Business, Franchisee must pay to Franchisor a continuing Monthly Software License Fee via automatic bank draft for the right to use the KIDOLINK Software. Currently, the continuing Monthly Software License Fee is $475 per month, which Franchisor reserves the right to increase by up to 10% in any calendar year.
C. TERMINATION
- (a) Term.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the KIDOLINK software is designed to assist franchisees in several key areas of their business operations. Specifically, the software aids in managing client leads and data, maintaining sales records and documentation, controlling inventory, supporting marketing efforts, handling administrative tasks, and enhancing customer service. This comprehensive suite of functions is intended to streamline operations and improve efficiency for both the franchisee and their employees.
The KIDOLINK software is licensed to franchisees for use during the term of their Franchise Agreement, but this license is personal, limited, non-assignable, non-transferable, and non-exclusive. Franchisees are prohibited from customizing the software. They can only use it for their internal business needs as a Kidokinetics franchisee. Access, copying, or allowing copies of the software is restricted, except for necessary use, backup, and archival purposes. Franchisees must use current versions of the KIDOLINK software, but may use prior versions if necessary to support the current version, and may be required to pay additional fees for upgrades.
Kidokinetics retains significant control over the KIDOLINK software. Franchisees must continue using the software and any updated versions as long as Kidokinetics requires. Kidokinetics can include a feature that disables the software if a franchisee materially breaches the Franchise Agreement, fails to submit required reports, or doesn't pay required fees or royalties. Upon termination of the license, franchisees must return or dispose of all copies of the software as instructed by Kidokinetics and remove all copies from their computers. Franchisees will not receive any refunds if the software is disabled or upon termination of the license. All data input and stored in the KIDOLINK Software is the sole and exclusive property of Kidokinetics.
Prospective franchisees should be aware that using the KIDOLINK software is a mandatory part of operating a Kidokinetics franchise, and they must adhere to the franchisor's terms and conditions for its use. The initial fee for the software is $3,000, but is reduced to $1,000 for additional Kidokinetics businesses owned by the same franchisee. Franchisees should also budget for potential future upgrade costs and ensure they have adequate hardware and internet access as required by Kidokinetics.