Must a Kidokinetics franchisee install modifications to the Computer System as directed by the franchisor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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' 2024 Franchise Disclosure Document, franchisees are required to make modifications to their computer systems as directed by the franchisor. Specifically, Kidokinetics franchisees must keep their computer systems in good repair and install any upgrades, additions, changes, modifications, substitutions, and/or replacements that Kidokinetics directs in writing. This compliance is at the franchisee's sole cost and expense.
Kidokinetics also has the right, but not the obligation, to develop or designate computer software programs that franchisees must use in connection with any component of the Computer System. Franchisees are responsible for the payment of all fees associated with the Required Software, Computer System and POS System. At Kidokinetics' request, franchisees must purchase or lease, and maintain, the Computer System and Required Software. Franchisees must also pay all fees associated with the use of Required Software, potentially payable to Kidokinetics or its approved suppliers.
Furthermore, Kidokinetics franchisees must install and maintain a computer system that complies with Kidokinetics' standards and specifications, including an office computer, a tablet computer, a telephone, a fax machine, and a smartphone. They must also adhere to procedures specified in the Franchise Operations Manual or in writing. Kidokinetics may also require franchisees to install and maintain systems that permit Kidokinetics to electronically access and retrieve any information stored in the franchisee's management software and other computer systems, including information concerning Gross Sales. There are no contractual limitations on Kidokinetics' right to access the information and data on Franchisee's POS System and Computer System.
These requirements ensure that all Kidokinetics franchises operate on a uniform technological platform, allowing for efficient data management, communication, and adherence to system standards. However, franchisees should be aware that these technology updates and maintenance are at their own expense, which could represent a significant ongoing cost. Prospective franchisees should inquire about the typical frequency and cost of these required updates to fully understand the financial implications.