Can Kidokinetics contribute or loan additional funds to the Brand Development Fund?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right to contribute or loan additional funds to the Brand Development Fund on any terms we deem reasonable.
The Brand Development Fund is not a trust, and we have no fiduciary obligations to you regarding our administration of the Brand Development Fund.
An unaudited financial accounting of the operations of the Brand Development Fund will be prepared annually and provided to you upon written request. acknowledge and agree that our expenditures from the Brand Development Fund in or affecting any geographic area may not be proportionate or equivalent to the Brand Development Fund Contribution by our franchisees operating in that geographic area and that you may not benefit directly or in proportion to your Brand Development Fund Contribution.
We reserve the right to change, merge, re-form or dissolve the Brand Development Fund in our discretion.
We will not use the Brand Development Fund for advertising principally for the solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement or website indicating "franchises available" or similar phrasing.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics retains the right to contribute or loan additional funds to the Brand Development Fund. The terms of these contributions or loans are determined at Kidokinetics' discretion. This fund is used to promote public awareness of the Kidokinetics brand and to improve the Kidokinetics system.
As a franchisee, you are required to contribute to this fund, paying two percent of gross sales. However, Kidokinetics has sole discretion over how the Brand Development Fund is spent. This means that the expenditures in any geographic area may not be proportionate to the contributions made by franchisees in that area, and franchisees may not directly benefit in proportion to their contributions.
Kidokinetics also has the right to change, merge, re-form, or dissolve the Brand Development Fund. While the fund will not be used primarily for advertising the sale of franchises, Kidokinetics reserves the right to include a notation indicating "franchises available" in any advertisement or website. An unaudited financial accounting of the Brand Development Fund's operations will be prepared annually and provided to franchisees upon written request.