What is a Kidokinetics franchisee advised to do regarding costs and expenses before operating their franchised business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- The financial figures in Table 1 do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised business. Franchisees or former franchisees, listed in the Disclosure Document, may be one source of this information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, prospective franchisees should conduct an independent investigation of the costs and expenses they will incur while operating their franchised business. The FDD indicates that the financial figures provided do not reflect all costs of sales, operating expenses, or other costs that must be deducted from gross revenue to determine net income or profit.
Kidokinetics suggests that potential franchisees consult current or former franchisees, whose contact information is listed in the Franchise Disclosure Document, as a source of information regarding potential costs and expenses. This allows prospective franchisees to gain insights from those with direct experience in running a Kidokinetics franchise.
This recommendation highlights the importance of due diligence before investing in a Kidokinetics franchise. By independently verifying potential costs and expenses and speaking with existing franchisees, prospective franchisees can make informed decisions and better prepare for the financial realities of operating a Kidokinetics business.