How are facility costs handled for the NW Broward Kidokinetics location?

According to Kidokinetics's 2024 Franchise Disclosure Document, the NW Broward location operates in a combined three-territory location in Florida and reports operating results on a combined basis. The FDD indicates that the expenses include actual amounts paid to locations where Kidokinetics programs are held, including revenue and profit-sharing fees and other rental fees charged by these facilities. For the NW Broward Location, these costs were deducted from revenue received by facilities prior to revenue being remitted by the facility to the NW Broward Location for services provided at these facilities.

This means that the facility costs for the NW Broward Kidokinetics location are handled by deducting the amounts paid to the facilities from the revenue before the facility remits the remaining revenue to the NW Broward location. This arrangement could simplify the accounting process for the franchisee, as the facility costs are directly offset against the revenue generated at those locations.

It's important to note that the NW Broward Location operates under a prior form of Franchise Agreement with alternative fee structures, paying a reduced Royalty Fee and not paying a Brand Development Fund Contribution or technology fees. Additionally, the FDD mentions that the Disclosed Operating Expenses do not include all operating expenses or costs of goods and/or services provided, and specifically excludes equipment expenses for non-standard equipment that is not used by other Franchised Locations. A prospective franchisee should inquire about what constitutes 'non-standard equipment' and how that might impact their potential expenses.