Is a Kidokinetics franchisee entitled to a refund if the KIDOLINK Software license expires or is terminated?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- (f) No Refunds.
Upon the expiration or termination of the license granted hereby, or if the KIDOLINK Software is disabled as described above, Franchisee will not receive any refund of any payments made to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee will not receive any refunds upon the expiration or termination of the KIDOLINK Software license. This also applies if the software is disabled.
This means that the initial $3,000 software license fee (or $1,000 for additional Kidokinetics businesses) and the ongoing monthly software license fee of $475 are non-refundable, regardless of whether the franchisee stops using the software due to termination of the franchise agreement, expiration of the license, or if Kidokinetics disables the software due to a breach of contract.
This no-refund policy is a significant consideration for prospective franchisees. It is essential to understand that the software license fees are sunk costs. Franchisees should carefully evaluate the value and necessity of the KIDOLINK Software for their business operations, as they will not be compensated for these fees under any circumstances related to license termination or expiration.