Does Kidokinetics currently require a custom and proprietary point of sale system (POS System)?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Computer Systems.
Kidokinetics
- 11.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems. There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System. Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
- 11.3.3.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are not currently required to use a custom and proprietary point of sale (POS) system. However, Kidokinetics retains the right to mandate the use of a POS system in the future as part of its proprietary operating system. If Kidokinetics implements a POS system, franchisees will be responsible for the expense of installing and maintaining it, along with other computer system components that meet Kidokinetics's standards.
Kidokinetics also has the right to access and retrieve any information stored in the franchisee's management software and other computer systems, including gross sales data. Franchisees must provide Kidokinetics with the necessary access credentials, such as usernames, passwords, IP addresses, and access codes, to facilitate this access. There are no contractual limitations on Kidokinetics's right to access information and data on the franchisee's POS system and computer system.
Franchisees are also required to use Kidokinetics's proprietary software, which handles scheduling, accounting, and inventory. Franchisees must acquire the necessary computer hardware to implement this software and adhere to all specifications and standards set by Kidokinetics. Franchisees must also sign a software license agreement, pay any associated license fees, and upgrade the software as directed by Kidokinetics. Franchisees must also participate in any system-wide computer network, intranet, or extranet system that Kidokinetics implements.