Are charitable contributions included in a Kidokinetics franchisee's expenditures on Local Marketing?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The following costs and expenditures incurred by Franchisee will not be included in Franchisee's expenditures on Local Marketing for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; or (iv) charitable, political or other contributions or donations.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, charitable contributions are not included in a franchisee's expenditures on Local Marketing, unless approved in advance by Kidokinetics in writing.
Kidokinetics franchisees must spend annually the greater of $500 or 2% of Gross Sales per month on a rolling 12-month average on advertising for the Kidokinetics business within their territory. This is known as the Local Marketing Requirement. Franchisees are not required to spend more than this amount, but there is no limit to how much they can spend on local advertising.
Other costs and expenditures that are not included in the Local Marketing Requirement, unless approved in advance by Kidokinetics in writing, are incentive programs for employees or agents, research expenditures, and salaries and expenses for personnel attending advertising meetings, workshops, or other marketing activities. Franchisees must submit a Local Marketing expenditure report to Kidokinetics by February 1st each year, accurately reflecting expenditures for the preceding annual period.