Must a Kidokinetics franchisee comply with the franchisor's standards and specifications for the Computer System and Required Software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Franchisee shall be responsible for the payment of all fees associated with the Required Software, Computer System and POS System.
- 11.3.4.
At Franchisor's request, Franchisee shall purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software.
Franchisee agrees to pay all fees associated with the use of Required Software, which may be payable to Franchisor or Franchisor's approved or designated suppliers.
Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software.
Franchisee agrees, at its own expense, to keep its Computer System in good maintenance and repair and install such upgrades, additions, changes, modifications, substitutions, and/or replacements to Franchisee's Computer System or Required Software as Franchisor directs from time to time in writing.
Franchisee agrees its compliance with this Section 11.3.4 shall be at Franchisee's sole cost and expense.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must strictly comply with the franchisor's standards and specifications for the Computer System and any Required Software. The franchisee is responsible for maintaining the computer system in good repair and installing any upgrades, additions, changes, modifications, substitutions, and/or replacements as directed by Kidokinetics in writing. All compliance is at the franchisee's sole cost and expense.
Kidokinetics has the right to develop or designate computer software programs that franchisees must use, referred to as "Required Software," which the franchisee must install at their own expense. This includes any updates, supplements, modifications, or enhancements to the Required Software. The franchisee is also responsible for all fees associated with the Required Software, Computer System, and POS System, payable to Kidokinetics or its approved suppliers.
Kidokinetics may create or designate a proprietary software program and will retain a proprietary interest in all databases, lists, templates, programs, and any other software components created or customized by Kidokinetics using the Computer System and/or Required Software. Franchisees must also obtain the necessary computer hardware to implement the Proprietary Software and comply with all specifications and standards prescribed by Kidokinetics regarding the Proprietary Software as provided in the Franchise Operations Manual.