For a Kidokinetics franchise with the number 3, what is the grace period in months following expiration?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchise with the number 3 has a grace period of 24 months following the grace period expiration. This information is detailed in Item 6, which outlines various fees and related conditions.

This grace period is relevant to the payment of minimum royalties. Kidokinetics franchisees receive an initial grace period of 90 days after completing initial training, during which they are not required to pay minimum royalties. After this initial grace period expires, the subsequent grace period determines when the minimum royalty payments begin. For a franchise numbered 3, this additional 24-month grace period means the franchisee has an extended timeframe before the minimum royalty payments become obligatory.

The minimum royalty structure for Kidokinetics starts after the grace period expiration. For the first 12 months following the grace period, the minimum royalty is $600 per month. It then increases to $800 per month for months 13 to 24, and further to $1,000 per month from month 25 onwards. Understanding these timelines and associated costs is crucial for prospective franchisees to manage their finances and plan for the long-term operation of their Kidokinetics business.

Prospective franchisees should carefully consider the implications of these grace periods and minimum royalty obligations. It is important to factor these costs into their financial projections and business plans to ensure the sustainability and profitability of their Kidokinetics franchise.