What are the franchisee's reimbursement obligations if Kidokinetics conducts remedial training at the franchisee's business location?

According to Kidokinetics' 2024 Franchise Disclosure Document, if Kidokinetics determines that a franchisee is not operating in compliance with the Franchise Agreement or Operations Manual, Kidokinetics may require the franchisee, their principal owner, designated managers, and other employees to attend remedial training. If this training is conducted at the franchisee's Kidokinetics business location, the franchisee is obligated to reimburse Kidokinetics for all expenses incurred by Kidokinetics or its representatives in providing the training.

This means that if Kidokinetics finds operational deficiencies during an inspection, they can mandate remedial training at the franchisee's location. The franchisee will then be responsible for covering the costs Kidokinetics incurs to provide this training. These costs could include travel, accommodation, and per diem expenses for the Kidokinetics trainers.

This policy is fairly standard in franchising, as franchisors need to ensure brand consistency and operational compliance. By requiring franchisees to cover the costs of on-site remedial training, Kidokinetics incentivizes franchisees to adhere to the operational standards outlined in the Franchise Agreement and Operations Manual. It also ensures that Kidokinetics is compensated for the resources they expend in correcting any deficiencies in a franchisee's business operations.