Does Kidokinetics have control over the charges set by establishments for access or rental fees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
In our experience and that of
our franchisees, the majority of these establishments do not charge any fee for the right to provide Kidokinetics services on their premises. However, an establishment may require you to pay an access or rental fee to provide services on its premises. An establishment could charge a flat fee per month in which you hold an event on its premises. Alternatively, an establishment may require you to pay a percentage of your event revenue. We estimate an approximate average of 5% of your annual revenue. These estimates take into consideration that establishments may charge or negotiate varying amounts at their discretion, and others will not impose any fee or revenue share. Because these establishments are independent third parties, you and they will arrange for these and other terms, and we do not have any control over or involvement with potential charges set by any establishment.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics does not have control over the access or rental fees that establishments may charge franchisees. These fees are determined independently by the third-party establishments where Kidokinetics franchisees provide their services. These establishments, such as schools, parks, and community centers, may require franchisees to pay a fee to use their premises.
The fees charged by these establishments can vary. They might be a flat monthly fee or a percentage of the revenue generated from events held at the location. Kidokinetics estimates that these fees could average around 5% of a franchisee's annual revenue. However, this is just an estimate, as the actual fees are subject to negotiation between the franchisee and the establishment. Some establishments may not charge any fee at all.
Since these establishments are independent entities, Kidokinetics franchisees are responsible for negotiating the terms of access and rental fees directly with them. Kidokinetics has no involvement in these negotiations and no control over the charges set by the establishments. This means that a franchisee's profitability can be affected by the rental and access fees they negotiate, making it important to carefully consider these costs when planning and budgeting for events.