What computer systems must a Kidokinetics franchisee install and maintain at their own expense?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Computer Systems.
Kidokinetics
- 11.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems. There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System. Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
- 11.3.3. Franchisor shall have the right, but not the obligation, to develop or designate: (i) computer software programs Franchisee must use in connection with any component of the Computer System (the "Required Software"), which Franchisee shall install at Franchisee's expense; (ii) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee shall install at Franchisee's expense; (iii) the tangible media upon which Franchisee records data; and (iv) the database file structure of the Computer System. Franchisee shall be responsible for the payment of all fees associated with the Required Software, Computer System and POS System.
- 11.3.4.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to install and maintain specific computer systems at their own expense. This includes an office computer, a tablet computer, a telephone, a fax machine, and a smartphone, ensuring they have the necessary tools for communication and administration. Franchisees must also maintain printers and other peripheral hardware, archival back-up systems, and a suitable Internet access mode and speed to support their operations. Additionally, they need to implement physical, electronic, and other security systems to protect data and ensure secure transactions.
Kidokinetics may also require franchisees to install and maintain a custom and proprietary point of sale system (POS System) if the franchisor incorporates such a system into its proprietary operating system in the future. Furthermore, Kidokinetics may require franchisees to install systems that allow the franchisor to electronically access and retrieve any information stored in the franchisee's management software and other computer systems, including data related to Gross Sales. Franchisees must provide Kidokinetics with access codes, usernames, and passwords to facilitate this access.
Kidokinetics also has the right to develop or designate specific computer software programs that franchisees must use, including any updates, supplements, modifications, or enhancements. Franchisees are responsible for all fees associated with the required software, computer system, and POS system. They must also ensure their computer systems are well-maintained, repaired, and upgraded as directed by Kidokinetics. Franchisees are also required to participate in any System-wide computer network, intranet system, or extranet system that Kidokinetics implements, using these systems for tasks such as submitting reports, accessing the Franchise Operations Manual, downloading advertising materials, and communicating with the franchisor and other franchisees.