Is a Kidokinetics franchisee required to pay fees to establishments to provide services on their premises?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
r acceptance. In our experience and that of
our franchisees, the majority of these establishments do not charge any fee for the right to provide Kidokinetics services on their premises. However, an establishment may require you to pay an access or rental fee to provide services on its premises. An establishment could charge a flat fee per month in which you hold an event on its premises. Alternatively, an establishment may require you to pay a percentage of your event revenue. We estimate an approximate average of 5% of your annual revenue. These estimates take into consideration that establishments may charge or negotiate varying amounts at their discretion, and others will not impose any fee or revenue share. Because these establishments are independent third parties, you and they will arrange for these and other terms, and we do not have any control over or involvement with potential charges set by any establishment.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee may be required to pay fees to establishments to provide services on their premises. While the majority of establishments may not charge a fee, some establishments such as schools, parks, community centers, summer camps, hotels, gyms, and health centers may require an access or rental fee. These fees can be structured as a flat monthly fee or as a percentage of the event revenue generated by the Kidokinetics franchisee.
The FDD indicates that these fees can vary and are subject to negotiation between the franchisee and the establishment. Kidokinetics estimates that these fees may average around 5% of the franchisee's annual revenue. However, this is only an estimate, as the actual fees will depend on the specific agreements made with each establishment.
Since these establishments are independent third parties, Kidokinetics franchisees are responsible for arranging the terms and fees with them directly. Kidokinetics does not have any control over or involvement with the potential charges set by these establishments. This means that a prospective franchisee should factor in potential access or rental fees when projecting their expenses and revenue. They should also consider the possibility of negotiating these fees to maximize their profitability.