Who bears the cost of keeping the Computer System in good maintenance and repair for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ereby subject to termination as provided herein.
11.3. Computer Systems.
Kidokinetics
- 11.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with maintaining and repairing the Computer System. The franchisee must install and maintain management software, required applications, and a computer system that adheres to Kidokinetics's standards and specifications, all at the franchisee's sole expense. This includes hardware like an office computer, tablet, phone, fax machine, and smartphone, as well as a point-of-sale (POS) system if Kidokinetics implements one in the future.
This requirement extends to printers, peripheral hardware, archival back-up systems, internet access, and security systems. The franchisee is also responsible for any upgrades to equipment, machinery, and tools, including software like QuickBooks Pro or other designated management software, as required by Kidokinetics.
Kidokinetics may also require franchisees to install and maintain systems that allow Kidokinetics to electronically access and retrieve information, including gross sales data, from the franchisee's management software and computer systems. The franchisee must provide Kidokinetics with access credentials to facilitate this access. This means the franchisee bears the full financial burden of ensuring the computer systems are operational, up-to-date, and accessible to Kidokinetics, which is a standard practice in franchising where franchisees typically manage their own technology infrastructure according to the franchisor's standards.