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What costs are NOT reflected in the financial figures presented in Table 1 for Kidokinetics?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

    1. The financial figures in Table 1 do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised business. Franchisees or former franchisees, listed in the Disclosure Document, may be one source of this information.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, the financial figures in Table 1 do not reflect costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. This means that while Table 1 presents gross sales figures for Kidokinetics franchises, it does not provide a complete picture of a franchisee's potential earnings because it omits various expenses.

As a prospective franchisee, it is important to understand that the gross sales figures in Table 1 represent revenue before any deductions for expenses. To determine potential profitability, you must independently investigate and account for all costs associated with operating a Kidokinetics franchise. These costs can include, but are not limited to, cost of goods sold, operating expenses, and other costs that are necessary to run the business.

Kidokinetics recommends that you conduct an independent investigation of the costs and expenses you will incur in operating your franchised business. The FDD suggests that current and former franchisees, listed in the document, may be one source of this information. By contacting these individuals, you can gain valuable insights into the actual costs associated with running a Kidokinetics franchise and develop a more accurate financial projection for your potential business.

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.