How should Kidokinetics franchisees conduct their advertising programs?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.1.9.
Conduct all advertising programs in a dignified manner that will not detract from the reputation of the System or the Marks;
- 11.1.10.
Submit all advertising, print materials (including, but not limited to, signs, brochures, websites, etc.), press releases, media packets and media information and any other information to be released for publication relating to the Kidokinetics Business, to Franchisor for written approval, prior to their being printed or published;
12. ADVERTISING, PROMOTIONS AND RELATED FEES
12.1. Advertising Programs. Franchisor may, from time to time, develop and administer advertising and sales promotion programs designed to promote and enhance the collective success of all Kidokinetics franchises operating under the System. Franchisee shall participate in all such advertising and sales promotion programs in accordance with the terms and conditions established by Franchisor from time to time for each program. In all aspects of these programs, including, without limitation, the type, quantity, timing, placement and choice of media, market areas and advertising agencies, the standards and specifications established by Franchisor, as modified from time to time, will be final and binding upon Franchisee.
12.2. Local Marketing.
12.2.1. In addition to the ongoing advertising contributions set forth herein, Franchisee shall spend annually, throughout the term of this Agreement, the greater of $500 or 2% of Gross Sales per
month on a rolling 12-month average ("Local Marketing Requirement") on advertising for the Kidokinetics Business within the Territory ("Local Marketing"). Franchisee is not required to spend more than the Local Marketing Requirement, but there is no limit on the amount Franchisee may spend on local advertising.
12.3. Regional Advertising and Promotional Cooperatives. Franchisor will have the right, in Franchisor's discretion, to designate any geographical area for purposes of establishing a regional advertising and promotional cooperative ("Cooperative"), and to determine whether a Cooperative is applicable to the Kidokinetics Business. If a Cooperative is established applicable to the Kidokinetics Business, Franchisee must participate in the Cooperative. Cooperative contributions will be credited towards the Local Marketing discussed in Section 12.2 above. Cooperative contributions will not exceed the Local Marketing Requirement unless a majority of the Cooperative votes to increase that requirement.
12.4. Internet Advertising.
At Franchisee's sole cost and expense, Franchisee must have paid advertising on the Internet, advertising Franchisee's Kidokinetics Business, including, but not limited to, Google, Yahoo, Bing and MSN.
These fees may be credited to your Local Marketing Requirement.
Franchisee shall not advertise or use the Marks in any fashion on the Internet or via other means of advertising through telecommunication, or establish any website listing, without the express written consent of Franchisor, which may be withheld in Franchisor's sole discretion.
Except as approved in advance in writing by Franchisor, Franchisee must not establish or maintain a separate website, splash page, profile or other presence on the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Kidokinetics Business, including any profile on Facebook, Twitter, LinkedIn, Plaxo, YouTube, Pinterest, Instagram, TikTok, or any other social media and/or networking site (whether currently in existence or developed in the future).
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must conduct all advertising programs in a dignified manner, ensuring they do not negatively impact the reputation of the Kidokinetics system or its trademarks. Franchisees are required to submit all advertising materials, including print materials like signs and brochures, as well as press releases and website content, to Kidokinetics for written approval before they are printed or published. This ensures that all advertising aligns with the brand's standards and image.
Kidokinetics franchisees are obligated to participate in advertising and sales promotion programs developed and administered by Kidokinetics. The franchisor has the final say on all aspects of these programs, including the type, quantity, timing, placement, choice of media, market areas, and advertising agencies used. Franchisees must also spend a minimum amount annually on local marketing, which is the greater of $500 or 2% of gross sales per month on a rolling 12-month average. This local marketing requirement ensures consistent promotion of the Kidokinetics business within the franchisee's territory.
Franchisees must also have paid advertising on the Internet, including platforms like Google, Yahoo, Bing, and MSN, and these fees may be credited towards their local marketing requirement. Additionally, franchisees are restricted from advertising or using the Kidokinetics marks on the Internet or through telecommunications without express written consent from Kidokinetics. They also cannot establish a separate website or social media presence without prior written approval from the franchisor, maintaining brand consistency across all online platforms. If a regional advertising cooperative is established, franchisees must participate, with contributions credited towards their local marketing requirement, although a majority vote can increase this requirement.