factual

Does Kidokinetics contribute to the Brand Development Fund for its company-owned businesses?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

Kidokinetics Businesses owned by us will contribute to the Brand Development Fund on the same basis as franchisees, except for one existing affiliate owned Kidokinetics Business.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics businesses owned by the company contribute to the Brand Development Fund on the same basis as franchisees, with one exception. The contribution is 2% of weekly Gross Sales. This policy ensures that company-owned locations support the marketing and promotion of the Kidokinetics brand alongside its franchisees.

The exception to this policy is one existing affiliate-owned Kidokinetics business. The FDD does not specify the reason for this exception or the terms under which this affiliate-owned business contributes to the Brand Development Fund.

This arrangement is fairly common in franchising, as it aligns the interests of the franchisor and franchisees in building brand recognition and driving business growth. Prospective franchisees should inquire about the specific details of the affiliate-owned business exception to fully understand the financial obligations and contributions within the Kidokinetics system.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.