What happens if a Kidokinetics franchisee develops a new concept related to the business?

According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee or any principal develops any new concept, process, or improvement in the performance of services, or in the operation or promotion of the Kidokinetics business, referred to as "Improvements", the franchisee is required to promptly notify Kidokinetics and provide them with all related information.

This clause ensures that Kidokinetics is kept in the loop regarding any advancements or innovations that franchisees come up with while operating their businesses. This allows Kidokinetics to assess the value and applicability of these improvements for the entire franchise system.

For a prospective franchisee, this means that any innovative ideas or enhancements they develop for their Kidokinetics business must be disclosed to the franchisor. While the FDD excerpt specifies the franchisee's obligation to inform Kidokinetics, it does not detail what Kidokinetics does with this information, whether they compensate the franchisee, or how the concept is implemented across the franchise. A prospective franchisee should seek clarification from Kidokinetics on how they handle franchisee-developed improvements and what benefits, if any, the franchisee receives for their contribution.