What is the 'Grace Period' for paying Minimum Royalties 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, franchisees receive 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 initial training. After these 90 days, the franchisee must begin paying the minimum royalty.
For franchisees who purchase multiple Kidokinetics franchises simultaneously, the initial grace period is extended for the second through fourth franchises. However, the document does not specify the length of the increased grace period, only that it exists.
After the initial grace period and any extensions expire, the minimum royalty fees are $600 per month for the first 12 months, $800 per month for months 13 to 24, and $1,000 per month for months 25 and beyond. A prospective franchisee should inquire about the length of the extended grace period for multiple franchises to fully understand the financial obligations.