What fees are reduced for the Dallas, North Carolina, and NW Broward Kidokinetics locations?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Related Adjustments.
The Dallas Location, North Carolina Location, and NW Broward Location operate under a prior form of Franchise Agreement with alternative fee structures.
These locations pay a reduced Royalty Fee and do not pay a Brand Development Fund Contribution or technology fees.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Dallas, North Carolina, and NW Broward locations operate under a prior form of franchise agreement, which affects the fees they pay. These locations benefit from a reduced royalty fee compared to the current franchise agreement.
Specifically, these locations do not have to pay a Brand Development Fund contribution, which is a fee that newer franchisees must pay. Additionally, the Dallas, North Carolina, and NW Broward Kidokinetics locations are exempt from technology fees that are part of the current franchise agreement.
For a prospective franchisee, this means that locations operating under the older agreement have a different fee structure than new franchises. The FDD imputes what the fees would be under the current agreement to provide a comparison. Understanding these differences is important for assessing the financial performance of these specific locations, as their historical expenses do not fully align with the fee structure a new franchisee would face.