Is the Kidokinetics Brand Development Fund audited?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The Brand Development Fund is not audited. Upon your written request, we will make available an annual accounting for the Brand Development Fund that shows how the Brand Development Fund proceeds have been spent for the previous year. During our fiscal year ended December 31, 2023, we spent 100% of the Brand Development Fund Contributions on administration.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Brand Development Fund is not audited. However, upon a franchisee's written request, Kidokinetics will provide an annual accounting that shows how the Brand Development Fund proceeds were spent in the previous year.
For prospective franchisees, this means that while there isn't a formal audit of the fund, Kidokinetics does offer a degree of transparency by providing an annual accounting of the fund's expenditures if requested. This allows franchisees to see where their contributions to the fund are being allocated. For the fiscal year ended December 31, 2023, 100% of the Brand Development Fund Contributions were spent on administration.
It is important to note that Kidokinetics has complete discretion on how the Brand Development Fund will be utilized and is not obligated to spend any amount on advertising in the geographical area where a franchisee is located. The Brand Development Fund is used for marketing, developing, and promoting the Kidokinetics system, marks, and franchises. Franchisees are required to pay 2% of their weekly Gross Sales to the Brand Development Fund.