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What happens to all Kidokinetics Cooperative contributions?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

If a Cooperative is established applicable to the Kidokinetics Business, Franchisee must participate in the Cooperative. Cooperative contributions will be credited towards the Local Marketing discussed in Section 12.2 above. Cooperative contributions will not exceed the Local Marketing Requirement unless a majority of the Cooperative votes to increase that requirement. The following provisions will apply to each Cooperative:

  • 12.3.1. Each Cooperative will be organized and governed in a form and manner, and will commence operation on a date, approved in advance by Franchisor;
  • 12.3.2. Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to Franchisor's approval, standardized advertising materials for use by the members in local advertising;
  • 12.3.3. No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without Franchisor's prior approval. All such plans and materials must be submitted to Franchisor for prior review and approval;
  • 12.3.4. The Cooperative's activities will be agreed upon by a majority vote of the member franchisees in the Cooperative. All Cooperative contributions will be credited against the Local Marketing Requirement. The Cooperative may, by the majority vote of its members, require a Cooperative contribution in excess of the Local Marketing requirement;

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics' 2024 Franchise Disclosure Document, if a regional advertising and promotional cooperative is established and applicable to a franchisee's Kidokinetics business, the franchisee must participate in the cooperative. All cooperative contributions will be credited towards the Local Marketing Requirement, which is discussed in Section 12.2 of the FDD.

The Kidokinetics cooperative is organized for the exclusive purpose of administering regional advertising programs and developing standardized advertising materials for use by the members in local advertising, subject to Kidokinetics' approval. No promotional or advertising plans or materials may be used by a cooperative or furnished to its members without Kidokinetics' prior approval. All such plans and materials must be submitted to Kidokinetics for prior review and approval.

The activities of the Kidokinetics cooperative will be agreed upon by a majority vote of the member franchisees in the cooperative. The cooperative may, by the majority vote of its members, require a cooperative contribution in excess of the Local Marketing requirement. This means that while contributions are typically credited against the Local Marketing Requirement, franchisees could be required to contribute more if the majority votes for it.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.