Must a Kidokinetics franchisee install replacements to the Computer System as directed by the franchisor?

According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to maintain and update their computer systems as directed by the franchisor. Specifically, the franchisee must 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 Kidokinetics directs from time to time in writing. This includes installing any computer software programs Kidokinetics designates for use with the Computer System, as well as any updates or modifications to that software.

This requirement extends to various components of the computer system, including hardware and software. The franchisee is responsible for covering all costs associated with these replacements, upgrades, and maintenance. This ensures that all Kidokinetics locations operate with compatible and up-to-date technology, maintaining uniformity across the system.

Kidokinetics also has the right to access and retrieve any information stored in the franchisee's management software and other computer systems, including gross sales data. Franchisees must provide Kidokinetics with the necessary access credentials, such as usernames, passwords, and IP addresses, to facilitate this access. This level of access allows Kidokinetics to monitor performance, ensure compliance, and provide support to franchisees.

Failure to comply with these technology standards and requirements could potentially lead to a breach of the franchise agreement. Prospective franchisees should carefully consider these ongoing technology expenses and the level of access Kidokinetics requires to their systems when evaluating the franchise opportunity.