What constitutes a 'territory' for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ircumstances.
We designate each Franchise as a separate "territory." In some cases, a single franchisee may operate several Franchises and provide operating results on a combined basis. We have noted any combined results in the notes to Table 1.
As of December 31, 2023, we had 125 franchised territories and nine affiliate-owned territories operated by four affiliate-owned businesses ("Affiliate Locations") in operation. We include information from 36 territories operated by sixteen franchisees that were open and operating for all twelve months of 2022 ("Franchised Locations") and information from the two Affiliate Locations that were open and operating for all twelve months of 2023, including one territory operated by our KKI Affiliate ("Affiliate Location #1") and three territories operated by our TK Affiliate ("Affiliate Location #2") (together, the
"Reporting Affiliate Locations"). Two territories opened by another affiliate opened in 2023 and have been excluded because they did not operate for all twelve months of 2023. The tables below provide information on two Affiliates Locations and sixteen reporting Franchised Locations ("Reporting Group") for calendar year 2023. For the three Franchise Locations in the Reporting Group that have operated for at least 24 months as of December 31, 2023 ("Mature Franchised Locations"), we also include data regarding the costs of goods sold and operating expenses incurred by these Mature Franchise Locations.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, each franchise is designated as a separate "territory." The document also indicates that a single franchisee may operate multiple franchises, and in some instances, they may provide combined operating results. The FDD notes any instances of combined results in the notes to Table 1.
As of December 31, 2023, Kidokinetics had 125 franchised territories in operation. Additionally, there were nine affiliate-owned territories operated by four affiliate-owned businesses. The financial performance representation includes data from 36 territories operated by sixteen franchisees that were open for all twelve months of 2022, as well as information from two affiliate locations open for all twelve months of 2023.
It is important to note that franchisees may operate in up to four territories. Kidokinetics allows franchisees who have purchased a Multi-Franchise to provide combined financial information. The franchisor does not collect separate financial data for each Kidokinetics Business operated by a franchisee. Therefore, figures for franchisees operating multiple territories may include significantly higher Gross Sales and Net Operating Income than a franchisee operating a single territory.