What fees and requirements are Affiliate Locations exempt from that Kidokinetics franchisees must pay?

According to Kidokinetics' 2024 Franchise Disclosure Document, Affiliate Locations benefit from several exemptions compared to franchised locations. Specifically, Affiliate Locations are not required to pay Royalty Fees, Brand Development Fund Contributions, or technology fees. Additionally, they are not subject to a Local Marketing Requirement, all of which are mandatory for Kidokinetics franchisees.

These exemptions can significantly impact the financial performance of Affiliate Locations compared to franchised locations. The absence of royalty fees, which are typically a percentage of gross sales, directly increases the net revenue retained by the Affiliate Locations. Similarly, not contributing to the Brand Development Fund and not paying technology fees further reduces their operational costs. The lack of a local marketing requirement also provides Affiliate Locations with greater flexibility in managing their advertising and promotional expenses.

For a prospective Kidokinetics franchisee, understanding these differences is crucial in evaluating the potential profitability and operational costs of a franchise versus an affiliate model. While the FDD provides this information, it's important to note that the financial performance of both franchised and affiliate locations can vary based on factors such as location, market conditions, and management effectiveness. Franchisees should conduct thorough due diligence, including consulting with existing franchisees and financial advisors, to assess the potential financial outcomes of a Kidokinetics franchise.