Does Kidokinetics have fiduciary obligations regarding the administration of the Brand Development Fund?

According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics does not have fiduciary obligations to franchisees regarding the Brand Development Fund. The FDD states that the Brand Development Fund is not a trust. Kidokinetics has sole discretion in determining how the fund is spent to promote the Kidokinetics brand and improve the Kidokinetics system.

Kidokinetics, or its affiliates or designees, administer the Brand Development Fund. These funds can be used for various activities, including advertising, marketing, public relations, brand development, research and development, website development, quality control programs, market research, and improvements to the Kidokinetics system. Kidokinetics also determines the content, concepts, materials, media, and placement of advertising activities.

Any surplus funds may be invested at Kidokinetics' discretion, and unused funds will be applied to the following year's funds. Kidokinetics reserves the right to contribute or loan additional funds to the Brand Development Fund. An unaudited financial accounting of the Brand Development Fund will be prepared annually and provided to franchisees upon written request. Expenditures from the Brand Development Fund in any geographic area may not be proportionate to the contributions made by franchisees in that area, and franchisees may not directly benefit in proportion to their contributions.