How does Kidokinetics communicate new or modified standards, specifications, and guidelines to franchisees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
SERVICES
You must operate your Kidokinetics Business according to our System and specifications. This includes purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics Franchise under our specifications, which may include purchasing these items from: (i) our designees; (ii) approved suppliers; and/or (iii) us or our affiliates. You must not deviate from these methods, standards and specifications without our prior written consent, or otherwise operate in any manner which reflects adversely on our Marks or the System.
Our confidential franchise operations manual ("Franchise Operations Manual") states our standards, specifications and guidelines for all products and services we require you to obtain in establishing and operating your Kidokinetics Franchise and approved vendors for these products and services. We will notify you of new or modified standards, specifications and guidelines through periodic amendments or supplements to the Franchise Operations Manual or through other written communication (including electronic communication such as email or through a system-wide intranet).
You must purchase, install, maintain in sufficient supply and use equipment, signs and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing.
Many of the products, supplies and services discussed above may only be purchased from approved suppliers in accordance with the Franchise Operations Manual. We will provide you with a list of these items and services and their approved suppliers, which may include or be limited to us or an affiliate. We are approved suppliers of the proprietary business management software. We or our affiliate are the exclusive provider of the Enhanced Business Coaching and Training Services for your Kidokinetics Businesses and of the marketing materials and services including the Initial Marketing Package. We are also an approved supplier of logoed items, such as uniforms, packaging supplies and other items bearing the Marks, but we may approve alternate suppliers in our discretion.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics communicates new or modified standards, specifications, and guidelines to franchisees through periodic amendments or supplements to the Franchise Operations Manual or through other written communication, including electronic communication such as email or through a system-wide intranet. The Franchise Operations Manual contains Kidokinetics's standards, specifications, and guidelines for all products and services franchisees must obtain to establish and operate their Kidokinetics franchise, including a list of approved vendors.
As a franchisee, it is crucial to stay informed of these updates, as you must operate your Kidokinetics Business according to the Kidokinetics system and specifications. This includes purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics Franchise under their specifications, which may include purchasing these items from designees, approved suppliers, or Kidokinetics or its affiliates. Deviating from these standards without prior written consent or operating in a manner that reflects adversely on Kidokinetics's marks or the system is not permitted.
If a franchisee wants to use any item or service in establishing or operating their Kidokinetics Business that Kidokinetics has not approved (for items or services that require supplier approval), the franchisee must first send Kidokinetics sufficient information, specifications, or samples for Kidokinetics to determine whether the item or service complies with their standards and specifications or whether the supplier meets their approved supplier criteria. The franchisee must reimburse Kidokinetics for all of their reasonable expenses in connection with determining whether they will approve an item, service, or supplier. Kidokinetics will decide within a reasonable time (usually 30 days) after receiving the required information whether the franchisee may purchase or lease the items or services or if they may purchase from the supplier. Kidokinetics's approval may later be withdrawn based on the supplier's performance, changes in their specifications, standards, or requirements, or for other reasons.
Kidokinetics estimates that approximately 30% to 80% of a franchisee's expenditures for leases and purchases in establishing their Kidokinetics Business will be from Kidokinetics or from other approved suppliers or under their specifications. Kidokinetics estimates that approximately 25% to 30% of a franchisee's expenditures on an ongoing basis will be from Kidokinetics or from other approved suppliers or under their specifications.