To whom may a Kidokinetics franchisee be required to pay fees associated with the use of Required Software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
version may include an upgrade to a version requiring an additional fee after the effective date of this Agreement.
B. FEES
- (a) Initial KIDOLINK Software License Fee. Franchisee must pay to Franchisor $3,000 for Franchisee's first Franchised Business and $1,000 for Franchisee's second or greater Franchised Business as a one-time Initial Software License Fee, due on the execution of this Agreement (unless), for the use of the KIDOLINK Software.
- (b) Monthly KIDOLINK Software License Fee. Beginning in the first month Franchisee beings to operate the Franchised Business, Franchisee must pay to Franchisor a continuing Monthly Software License Fee via automatic bank draft for the right to use the KIDOLINK Software. Currently, the continuing Monthly Sof
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees are required to pay fees to Kidokinetics for software licenses. Specifically, franchisees must pay Kidokinetics an initial "Software License Fee" of $3,000 for their first franchised business, or $1,000 for each additional Kidokinetics business. This fee is paid when the Franchise Agreement is signed.
In addition to the initial fee, franchisees must also pay Kidokinetics a continuing monthly software license fee for the right to use the KIDOLINK software. The current monthly fee is $475, and Kidokinetics retains the right to increase this fee by up to 10% in any calendar year. These monthly fees are collected via automatic bank draft.
Furthermore, the FDD states that franchisees are responsible for all technology-related fees and expenses required by the Franchise Agreement. This includes, but is not limited to, the costs of computer hardware and software, internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform, web page design, and fees related to exposure on Kidokinetics' website. Therefore, while the primary software fees are paid directly to Kidokinetics, franchisees should anticipate additional technology-related expenses that support the software and overall business operations.