For a Kidokinetics franchise number 2, what is the grace period in months following the grace period expiration?

According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee purchases multiple franchises, specifically the second franchise, they receive a grace period of 12 months following the expiration of the initial grace period. This extended grace period affects when the franchisee is required to begin paying minimum royalties.

This grace period impacts the franchisee's financial obligations. Instead of immediately owing minimum royalties after the initial 90-day grace period, the franchisee has an additional 12 months before those minimum royalty payments kick in. This can provide significant financial relief and allow the franchisee more time to establish the second Kidokinetics location and generate revenue before the minimum royalty obligations begin.

It's important to note that this extended grace period applies specifically to the second, third, and fourth franchises purchased. The initial franchise agreement will have its own initial grace period of 90 days. Understanding these grace periods is crucial for financial planning and managing cash flow during the initial stages of operating multiple Kidokinetics franchises.