Can Kidokinetics change, merge, re-form or dissolve the Brand Development Fund?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right to contribute or loan additional funds to the Brand Development Fund on any terms we deem reasonable.
The Brand Development Fund is not a trust, and we have no fiduciary obligations to you regarding our administration of the Brand Development Fund.
An unaudited financial accounting of the operations of the Brand Development Fund will be prepared annually and provided to you upon written request. acknowledge and agree that our expenditures from the Brand Development Fund in or affecting any geographic area may not be proportionate or equivalent to the Brand Development Fund Contribution by our franchisees operating in that geographic area and that you may not benefit directly or in proportion to your Brand Development Fund Contribution.
We reserve the right to change, merge, re-form or dissolve the Brand Development Fund in our discretion.
We will not use the Brand Development Fund for advertising principally for the 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.
We may, upon 30 days' prior written notice to you, terminate and/or reinstate the Brand Development Fund.
We will spend all amounts before any termination of the Brand Development Fund.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, Kidokinetics reserves the right to modify the Brand Development Fund. Specifically, Kidokinetics has the discretion to change, merge, re-form, or even dissolve the Brand Development Fund.
Kidokinetics also retains the right to contribute or loan additional funds to the Brand Development Fund under terms they deem reasonable. However, the Brand Development Fund is not considered a trust, and Kidokinetics does not have any fiduciary obligations to franchisees regarding its administration.
Kidokinetics will provide an unaudited financial accounting of the Brand Development Fund's operations annually, available upon written request from franchisees. It's important to note that expenditures from the Brand Development Fund in any geographic area may not be proportionate or equivalent to the contributions made by franchisees in that area, and franchisees may not directly benefit in proportion to their contributions. Kidokinetics will not use the Brand Development Fund for advertising principally for the solicitation for the sale of Franchises, but they reserve the right to include a notation in any advertisement or website indicating "franchises available" or similar phrasing. Kidokinetics may terminate and/or reinstate the Brand Development Fund upon 30 days' prior written notice and will spend all amounts before any termination of the Brand Development Fund.