What causes an increase in the Kidokinetics Technology Fee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ER FEES
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | The greater of 8% of Gross Sales (2) or the "Minimum Royalty" (3) | Due on Wednesday of\neach week for percentage-based Royalty; Monthly for the Minimum Royalty | The "Royalty" is based on "Gross Sales" during the previous week. Your Royalty is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. See Note 3 for a breakout of the Minimum Royalty by timeframe of operation. |
| Brand Development | 2% of Gross Sales | Weekly | You must pay us a brand development fund contribution of 2% of Gross Sales at the same time as the Royalty. We may use the brand development fund for any purpose we determine. |
| Fund Contribution | |||
| Technology Fee | The then-current fee (currently $475 per month with an additional fee of $6 per month if you request additional email addresses) | Monthly | This fee covers certain technologies used in the operation of your Kidokinetics Business and includes up to four e-mail addresses, our KIDOLINK software, access to our Kidokinetics workspace on Slack, and up to two seats on Monday.com, our workflow management and customer relationship management tool. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Technology Fee can increase due to several factors. The standard Technology Fee is currently $475 per month. However, if a franchisee requests additional email addresses beyond the four already included, they will incur an extra charge of $6 per month for each additional email address.
Furthermore, the Technology Fee may be adjusted to reflect price increases from third-party vendors that Kidokinetics uses to provide the technology covered by the fee. These technologies include KIDOLINK software, access to the Kidokinetics workspace on Slack, and up to two seats on Monday.com, a workflow management and customer relationship management tool.
Finally, franchisees are responsible for any increase in fees resulting from upgrades, modifications, or additional services or software they choose to implement. It is important to note that the standard Technology Fee covers up to four Kidokinetics Businesses, provided they are operated by the same legal entity and have adjacent territories. This could be a benefit for franchisees who own multiple locations.