Does Kidokinetics grant franchisees an exclusive territory?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- TERRITORY
You and we will agree on your territory before you sign the Franchise Agreement. You will not receive an exclusive territory ("Territory"). You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Except as described below, we will not establish or franchise others to establish another Kidokinetics Business within your designated Territory during the term of the Franchise Agreement. Your Territory for each Kidokinetics Business will contain a minimum population of approximately 250,000 persons. You may offer the Kidokinetics® sports fitness programs to all schools, parks, community centers, summer camps, hotels, gyms, health centers and similar establishments located within your Territory.
The Kidokinetics Business is a mobile business that provides sports fitness programs to children at schools, parks, community centers, summer camps, hotels, gyms, health centers and similar establishments within a designated territory. You may choose to have a home-based office for your Kidokinetics Business, located within your Territory. If you wish to rent commercial office space, such space must also be located within your Territory, and you must request our acceptance. In our experience and that of
our franchisees, the majority of these establishments do not charge any fee for the right to provide Kidokinetics services on their premises. However, an establishment may require you to pay an access or rental fee to provide services on its premises.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees will not receive an exclusive territory. However, Kidokinetics states that as long as the Franchise Agreement is in effect, they will not establish, own, operate, or license others to establish, own, or operate any other Kidokinetics Business within the franchisee's designated territory. The territory for each Kidokinetics Business will contain a minimum population of approximately 250,000 persons. Franchisees may offer Kidokinetics sports fitness programs to establishments like schools, parks, community centers, summer camps, hotels, gyms, and health centers within their territory.
Even though Kidokinetics will not establish another franchise within the franchisee's territory, the franchisee may face competition from other franchisees, outlets that Kidokinetics owns, other distribution channels, or competitive brands that Kidokinetics controls. Kidokinetics retains the right to operate Kidokinetics Businesses outside of the franchisee's territory. They can also engage in business ventures, offer similar products under different trademarks, and sell products or services through various channels, including the internet.
Kidokinetics franchisees are restricted in their ability to use other channels of distribution, such as the Internet, to make sales of services or products to customers. Franchisees may not maintain a website without prior written consent from Kidokinetics, and Kidokinetics has the right to set the terms for approval, such as requiring that the domain name and home page belong to them and be licensed to the franchisee during the Franchise Agreement term. These stipulations highlight the importance of understanding the competitive landscape and the limitations on marketing and sales channels when considering a Kidokinetics franchise.