Who bears the cost of maintaining and repairing the Computer System for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System.
Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
- 11.3.3.
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 installing and maintaining the computer system. This includes hardware, software, and any required updates. Kidokinetics may also require the franchisee to install and maintain systems that allow Kidokinetics to access information stored within the franchisee's computer systems.
The computer system includes an office computer, a tablet computer, a telephone, a fax machine, and a smartphone. It also includes a custom and proprietary point of sale system (POS System), if Kidokinetics makes such a POS System part of its proprietary operating system in the future, printers and other peripheral hardware or devices, archival back-up systems, Internet access mode and speed, and physical, electronic, and other security systems.
Kidokinetics also specifies that the franchisee must maintain adequate hardware and software to access the internet at the speed required by Kidokinetics. The franchisee is also required to maintain an electronic mail account with an internet service provider acceptable to Kidokinetics and read all electronic mail related to the Kidokinetics business on a daily basis, acknowledging receipt of all electronic mail sent by Kidokinetics. This ensures franchisees stay up-to-date with communications and operational requirements from the franchisor.