How does the Kidokinetics Franchisor collect the Interim Management Fee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee an interim management support fee ("Interim Management Fee") until such Manager is properly trained or certified in accordance with Franchisor's requirements.
The Interim Management Fee will be in the amount of 10% percent of Gross Sales earned during the interim management period plus the subsequent three weeks, payable in addition to all regularly occurring fees including Royalty and Brand Development Fund Contributions, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, and be withdrawn from Franchisee's designated bank account.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, if the franchisor provides interim management support, they will charge an Interim Management Fee. This fee is 10% of Gross Sales earned during the interim management period, plus the subsequent three weeks. This is in addition to all regularly occurring fees, such as Royalty and Brand Development Fund Contributions.
Kidokinetics will also charge for any and all costs of travel, lodging, meals, and other expenses reasonably incurred by the franchisor during the interim management period.
Kidokinetics collects the Interim Management Fee by withdrawing it from the franchisee's designated bank account.