Does Kidokinetics collect separate financial numbers for each Kidokinetics Business operated by a franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Franchisees may operate in up to four territories. We allow franchisees who have purchased a Multi-Franchise to provide combined financial information to us. We do not collect or require franchisees to provide us with separate numbers for each Kidokinetics Business they operate. Because the figures above for the Dallas Location and NW Broward Location include aggregate totals for multiple Kidokinetics Businesses, these figures may include significantly higher Gross Sales and Net Operating Income than a franchisee would generate operating a single territory. A breakdown of these numbers by each Kidokinetics Business would result in significantly lower numbers.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics does not collect separate financial numbers for each Kidokinetics Business operated by a franchisee. The FDD states that Kidokinetics allows franchisees who have purchased a Multi-Franchise to provide combined financial information.
This means that if a franchisee operates multiple Kidokinetics territories, they are permitted to report their financial performance as a single, combined entity rather than providing individual reports for each territory. The financial information in Item 19 may include aggregate totals for multiple Kidokinetics Businesses, which could result in higher Gross Sales and Net Operating Income than a franchisee operating a single territory might generate.
Prospective franchisees should be aware that the financial performance representations provided in the FDD for multi-territory locations reflect combined results. Therefore, these figures may not be representative of the potential performance of a single Kidokinetics territory. Kidokinetics indicates that a breakdown of these numbers by each Kidokinetics Business would result in significantly lower numbers. Franchisees should consider this when evaluating the financial opportunity and conduct their own due diligence to estimate the potential performance of individual territories.