What must a Kidokinetics franchisee submit to the franchisor on or before February 1st each year?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
On or before the 1st day of February each year, Franchisee must submit to Franchisor a Local Marketing expenditure report accurately reflecting such expenditures for the preceding annual period. If that day is not a business day, then such report will be due on the next business day. The following costs and expenditures incurred by Franchisee will not be included in Franchisee's expenditures on Local Marketing for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; or (iv) charitable, political or other contributions or donations.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees must submit a Local Marketing expenditure report to the franchisor on or before February 1st each year. This report should accurately reflect the franchisee's local marketing expenditures for the preceding annual period. If February 1st is not a business day, the report is due on the next business day.
The purpose of this report is to ensure that franchisees are meeting their Local Marketing Requirement, which is the greater of $500 or 2% of Gross Sales per month on a rolling 12-month average. However, a single franchisee operating up to four outlets with the same legal entity and adjacent territories does not have an additional Local Marketing Requirement.
It is important to note that certain costs and expenditures may not be included in the Local Marketing expenditure report unless approved in advance by Kidokinetics in writing. These include incentive programs for employees or agents, research expenditures, salaries and expenses for personnel attending advertising meetings, and charitable or political contributions. Franchisees should maintain detailed records of their marketing expenses throughout the year to ensure accurate reporting.