What criteria were used to define the 'Franchised Locations' included in the Kidokinetics financial performance representation?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
"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. We exclude the data of the 89 franchised territories that did not operate for all twelve months of 2023. The Affiliate Locations do not pay Royalty Fees, Brand Development Fund Contributions, or technology fees and are not subject to a Local Marketing Requirement, all of which a franchised Kidokinetics Businesses will have to pay. The Kidokinetics Businesses included in this financial performance representation offer similar services and faces a similar degree of competition anticipated for the Kidokinetics Businesses offered under this Franchise Disclosure Document.
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 performance representation includes data from specific franchised locations that met certain criteria. The franchisor included data from 16 franchised locations that were open and operating for all twelve months of 2023. These locations are referred to as the "Reporting Group".
Kidokinetics excluded data from 89 franchised territories that did not operate for the entire twelve months of 2023. Additionally, two territories opened by an affiliate in 2023 were excluded because they did not operate for all twelve months of 2023. The franchisor also provides additional data for three franchise locations within the Reporting Group that had been operating for at least 24 months as of December 31, 2023, which they term "Mature Franchised Locations".
It is important to note that the financial performance data does not reflect the costs of sales, operating expenses, or other costs that must be deducted to obtain net income or profit. The franchisor advises prospective franchisees to conduct an independent investigation of the costs and expenses they will incur while operating their franchised business.