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Does a Kidokinetics franchisee agree to strictly comply with the franchisor's standards for all items associated with the Computer System?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

ereby subject to termination as provided herein.

11.3. Computer Systems.

Kidokinetics

  • 11.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
  • 11.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems. There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System. Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
  • 11.3.3. Franchisor shall have the right, but not the obligation, to develop or designate: (i) computer software programs Franchisee must use in connection with any component of the Computer System (the "Required Software"), which Franchisee shall install at Franchisee's expense; (ii) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee shall install at Franchisee's expense; (iii) the tangible media upon which Franchisee records data; and (iv) the database file structure of the Computer System.

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must adhere to specific standards and specifications for their computer systems. Kidokinetics requires franchisees to install and maintain management software, required applications, and a computer system that meets the franchisor's standards. This includes an office computer, a tablet computer, a telephone, a fax machine, and a smartphone. It also includes a custom and proprietary point of sale system (POS) if Kidokinetics makes it part of their operating system in the future, as well as printers, archival back-up systems, internet access, and security systems.

Franchisees are also required to participate in any system-wide computer network, intranet, or extranet system that Kidokinetics implements. They may be required to use these systems for submitting reports, viewing the Franchise Operations Manual, downloading advertising materials, communicating with Kidokinetics and other franchisees, and completing training. Franchisees must use these systems in strict compliance with the standards, protocols, and restrictions outlined in the Franchise Operations Manual, including those related to data encryption and prohibitions against transmitting libelous or defamatory statements.

Furthermore, Kidokinetics franchisees must maintain adequate hardware and software to access the internet at the speed required by Kidokinetics and maintain an electronic mail account with an acceptable internet service provider. Franchisees are expected to read all electronic mail related to their Kidokinetics business daily and acknowledge receipt of emails from Kidokinetics. These stipulations ensure that Kidokinetics franchisees maintain a consistent and up-to-date technological infrastructure, allowing for efficient communication, data management, and adherence to Kidokinetics's operational standards.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.