When does the Grace Period expire for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You will receive a grace period ("Grace Period") before you are required to begin paying Minimum Royalties.
The Grace Period will be for 90 days beginning on the day you successfully complete the initial training and will expire after 90 days.
If you purchase multiple franchises at the same time, you will receive an increased Grace Period for your second through fourth franchises as summarized below.
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a new franchisee receives a grace period before they are required to begin paying minimum royalties. This grace period lasts for 90 days, starting on the day the franchisee successfully completes their initial training. Therefore, the grace period expires 90 days after the completion of initial training.
For franchisees who purchase multiple Kidokinetics franchises simultaneously, the FDD states that they will receive an increased grace period for their second through fourth franchises. The specific duration of these extended grace periods is not detailed in the provided excerpts.
After the grace period expires, the franchisee will be required to pay the minimum royalty. The minimum royalty amount varies depending on the timeframe of operation. For the first 12 months after the grace period expiration, the minimum royalty is $600 per month. It then increases to $800 per month for months 13 to 24, and $1,000 per month for months 25 and beyond.