Are Kidokinetics franchisees who have purchased a Multi-Franchise allowed to provide combined financial information?

According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees who have purchased a Multi-Franchise are allowed to provide combined financial information to Kidokinetics. Kidokinetics does not collect or require franchisees to provide separate numbers for each Kidokinetics business they operate. This means that if a franchisee owns multiple territories, they can report their financial performance as a single, combined entity rather than providing individual reports for each location.

However, the FDD notes that the financial figures presented for locations operating multiple Kidokinetics businesses may include significantly higher Gross Sales and Net Operating Income than a franchisee would generate operating a single territory. The FDD clarifies that a breakdown of these numbers by each Kidokinetics business would result in significantly lower numbers. This is an important consideration for prospective franchisees reviewing the financial performance representations, as the aggregated data may not be representative of a single-territory operation.

Kidokinetics' approach to collecting and presenting financial information on a combined basis for multi-franchise owners is not uncommon in the franchise industry. It simplifies reporting for franchisees with multiple units. However, prospective franchisees should be aware of the potential for inflated figures when reviewing the financial performance data and should focus on understanding the performance of single-territory operations to get a more accurate picture of their potential earnings.