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

According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to install upgrades to 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 Franchisor directs from time to time in writing. The franchisee bears the cost of compliance with these requirements.

Kidokinetics may also require franchisees to install and maintain systems that permit the franchisor to electronically access and retrieve any information stored in the franchisee's management software and other computer systems, including information concerning Gross Sales. Franchisees must provide user names and temporary passwords, as well as all access codes and static internet protocol addresses to facilitate the franchisor's access to the data generated by and stored in the franchisee's computer, tablet, or smartphone.

Kidokinetics also has the right to develop or designate computer software programs that the franchisee must use in connection with any component of the Computer System, including updates, supplements, modifications, or enhancements to the Required Software, which the franchisee shall install at the franchisee's expense. The franchisee is responsible for the payment of all fees associated with the Required Software, Computer System and POS System.

These stipulations ensure that Kidokinetics franchisees maintain a uniform and up-to-date technological infrastructure, allowing for efficient data management, system-wide consistency, and franchisor oversight. However, it also places the financial burden of these mandatory upgrades and system maintenance on the franchisee, which could represent a significant ongoing expense.