factual

Can the Kidokinetics Brand Development Fund be used for local marketing?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

We have complete discretion on how the Brand Development Fund will be utilized. We may use the Brand Development Fund for local, regional, or national marketing, or any expenditure that we, in our sole discretion, deem necessary or appropriate to promote or improve the System or the Kidokinetics brand. For example, we may use the Brand Development Fund for: (i) developing, maintaining, administering, directing, preparing or reviewing advertising and marketing materials, promotions and programs, including social media management; (ii) public awareness of any of the Marks; (iii) public and consumer relations and publicity; (iv) brand development; (v) research and development of technology, products and services; (vi) website development (including social media) and search engine optimization; (vii) development and implementation of quality control programs; (viii) conducting market research; (ix) changes and improvements to the System; (x) the fees and expenses of any advertising agency we engage to assist in producing or conducting advertising or marketing efforts; (xi) collecting and accounting for Brand Development Fund Contributions; (xii) preparing and distributing financial accountings of the Brand Development Fund; (xiii) conducting quality assurance programs and other reputation management functions; and (xiv) our and our affiliates' expenses associated with direct or indirect labor, administrative, overhead, or other expenses incurred in relation to any of these activities. We may use national and/or regional advertising agencies as the source for our advertising materials, or we may prepare them in-house.

We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We do not guarantee that advertising expenditures from the Brand Development Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Brand Development Fund Contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing.

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 can be used for local marketing. Kidokinetics has complete discretion on how the Brand Development Fund is utilized and may use it for local, regional, or national marketing.

This means that a portion of the 2% of weekly gross sales that franchisees contribute to the Brand Development Fund could be used to promote the Kidokinetics brand in their specific area. However, Kidokinetics is not obligated to spend any amount on advertising in the geographical area where a franchisee is located and does not guarantee that advertising expenditures from the Brand Development Fund will benefit any franchisee directly or on a pro rata basis.

In addition to the Brand Development Fund, Kidokinetics franchisees are required to spend the greater of $500 or 2% of Gross Sales per month on local advertising and marketing to promote their Kidokinetics Business. Franchisees must order sales and marketing material from Kidokinetics or its designated suppliers, and any use of their own advertising materials, including a website, requires prior written approval from Kidokinetics.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.