What elements are included in the 'System' as it relates to a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- "System" means our system for the establishment, development, operation, and management of a Kidokinetics Business, including Know-how, proprietary programs and products, confidential operations manuals, and operating system.
11. FRANCHISEE'S OPERATIONS
- 11.1. Operation of Kidokinetics Business. In order to maintain the highest degree of quality and service on a uniform System-wide basis, Franchisee shall operate the Kidokinetics Business in conformity with the methods, standards, specifications and operating procedures prescribed by Franchisor. Franchisee agrees to comply with the Franchise Operations Manual, as it is modified from time to time, and all directives, rules and procedures specified by Franchisor, and will, among other things:
- 11.1.1. Use only such supplies, equipment and vehicles which comply with Franchisor's specifications;
- 11.1.2. Maintain and operate the Kidokinetics Business in good condition and repair and in a proper and businesslike manner, using Franchisee's best efforts to maintain the Kidokinetics Business in accordance with current System standards, the Franchise Operations Manual and all other directives and requirements of Franchisor, as they may be amended from time to time, and do such repairing, refurbishing and restoration as from time to time may be reasonably required to meet System standards and Franchisor's requirements as they may be modified from time to time;
- 11.1.9.
Conduct all advertising programs in a dignified manner that will not detract from the reputation of the System or the Marks;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the 'System' encompasses the methods, standards, specifications, and operating procedures prescribed by Kidokinetics for establishing, developing, operating, and managing a Kidokinetics Business. This includes know-how, proprietary programs and products, confidential operations manuals, and the operating system itself. Franchisees must operate their Kidokinetics Business in conformity with these System-wide standards to maintain uniformity and quality.
Specifically, the Kidokinetics system relies on the use of approved supplies, equipment, and vehicles that meet Kidokinetics' specifications. Franchisees are expected to maintain their Kidokinetics Business in good condition and repair, adhering to current System standards, the Franchise Operations Manual, and all directives from Kidokinetics. This includes performing necessary repairs, refurbishing, and restoration to meet System standards and Kidokinetics' requirements, which may be modified over time.
Furthermore, the System emphasizes the importance of protecting Kidokinetics' intellectual property, which is vital to the success of both the franchisor and its franchisees. The confidentiality agreement included in the FDD highlights that access to confidential information, knowledge, know-how, and the contents of the Kidokinetics operations manual provides an economic advantage and must be protected against unfair competition. Franchisees must also conduct advertising programs in a dignified manner that does not detract from the reputation of the System or the Marks and submit all advertising and print materials to Kidokinetics for written approval before publication.
In practical terms, this means a Kidokinetics franchisee must adhere strictly to the established operational guidelines and protect the brand's intellectual property. This ensures consistency across all franchise locations and maintains the brand's reputation. The franchisee must also be prepared to invest in approved equipment and supplies and to keep the business location in good repair, as dictated by Kidokinetics' standards.