What is the definition of 'Proprietary Software' in the context of a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- C. Franchisor's affiliate has developed the KIDOLINK business management software, for which Franchisor has the contractual right to sublicense, to be utilized by Franchisee in connection with the Franchised Business ("KIDOLINK Software"). The KIDOLINK software provides assistance with the management of client leads and data, sales records and documentation, inventory control, marketing efforts, administrative matters, and customer service for Franchisee and Franchisee's employees.
- D. Franchisor may also, from time to time, whether itself or through its designees develop customized software for Franchisee's use in connection with the Franchised Business ("Customized Software"). Franchisee may, at the discretion of Franchisor, be required to purchase and use the Customized Software. Whether Franchisee is required to, or otherwise elects to, use the Customized Software, Franchisee agrees to abide by the terms of this Agreement with regards to any Customized Software. The KIDOLINK Software and Customized Software will be referred to collectively in this Agreement as the "Proprietary Software."
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the Proprietary Software consists of the KIDOLINK Software and any Customized Software. The KIDOLINK Software is business management software developed by Kidokinetics' affiliate, which Kidokinetics has the contractual right to sublicense to franchisees. This software assists with managing client leads and data, sales records and documentation, inventory control, marketing efforts, administrative matters, and customer service.
Kidokinetics may also develop Customized Software for franchisee use. Franchisees may be required to purchase and use this Customized Software at Kidokinetics' discretion. Both the KIDOLINK Software and any Customized Software are collectively referred to as the "Proprietary Software" in the agreement.
For a prospective Kidokinetics franchisee, understanding the scope and requirements of the Proprietary Software is crucial. Franchisees are obligated to implement the computer systems, including all software and hardware, that Kidokinetics requires. They are granted a limited, non-transferable license to use the KIDOLINK Software during the franchise term, and are generally prohibited from customizing it. Franchisees must use current versions of the KIDOLINK Software and may be required to upgrade to versions that necessitate additional fees. This ensures that all franchisees operate on a standardized platform, maintaining consistency across the Kidokinetics system.