To whom may fees associated with the use of Required Software be payable for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee must pay to Franchisor a "Software License Fee" of $3,000 for use of Franchisor's proprietary software when Franchisee signs this Agreement.
This fee is uniform and non-refundable.
Franchisee must also sign the "Software License Agreement," the form of which is attached to Franchisor's Franchise Disclosure Document in Exhibit H, when Franchisee signs the Franchise Agreement.
If this Agreement is for an additional Kidokinetics Business, Franchisee shall pay Franchisor a reduced Software License Fee of $1,000 when Franchisee signs this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees may be required to pay software license fees to Kidokinetics. Specifically, franchisees must pay Kidokinetics an initial software license fee of $3,000 for their first franchised business, or $1,000 for each additional franchised business. In addition to the initial fee, franchisees must also pay Kidokinetics a continuing monthly software license fee, which is currently $475 per month. Kidokinetics retains the right to increase this monthly fee by up to 10% in any calendar year.
Kidokinetics franchisees are obligated to use the KIDOLINK Software as long as Kidokinetics requires it, and they must use any updated versions of the software. Franchisees are also responsible for all technology-related fees and expenses, including the costs of computer hardware and software, internet access, license fees, help desk fees, and fees for a franchise portal or benchmarking platform.
It is important to note that all data and information input and stored in the KIDOLINK Software is the sole and exclusive property of Kidokinetics. Upon termination of the franchise agreement, franchisees will not receive any refund of payments made to Kidokinetics and must return or dispose of all physical copies of the KIDOLINK Software and its associated documentation as instructed by Kidokinetics.