What happens if a Kidokinetics franchisee operates in any manner which reflects adversely on the Marks or the System?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
SERVICES
You must operate your Kidokinetics Business according to our System and specifications. This includes purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics Franchise under our specifications, which may include purchasing these items from: (i) our designees; (ii) approved suppliers; and/or (iii) us or our affiliates. You must not deviate from these methods, standards and specifications without our prior written consent, or otherwise operate in any manner which reflects adversely on our Marks or the System.
Our confidential franchise operations manual ("Franchise Operations Manual") states our standards, specifications and guidelines for all products and services we require you to obtain in establishing and operating your Kidokinetics Franchise and approved vendors for these products and services. We will notify you of new or modified standards, specifications and guidelines through periodic amendments or supplements to the Franchise Operations Manual or through other written communication (including electronic communication such as email or through a system-wide intranet).
You must purchase, install, maintain in sufficient supply and use equipment, signs and supplies that conform to the standards and specifications described in the Franchise Operations Manual or otherwise in writing.
Many of the products, supplies and services discussed above may only be purchased from approved suppliers in accordance with the Franchise Operations Manual. We will provide you with a list of these items and services and their approved suppliers, which may include or be limited to us or an affiliate. We are approved suppliers of the proprietary business management software.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must operate their Kidokinetics business according to the Kidokinetics system and specifications. This includes purchasing or leasing products, services, supplies, equipment, computer hardware and software, and inventory related to establishing and operating the Kidokinetics franchise under their specifications. Franchisees must not deviate from the methods, standards and specifications without prior written consent, or otherwise operate in any manner which reflects adversely on the Kidokinetics Marks or the Kidokinetics System.
Kidokinetics provides standards, specifications, and guidelines for all products and services franchisees are required to obtain in establishing and operating their Kidokinetics franchise, including approved vendors for these products and services, in their confidential franchise operations manual. Kidokinetics will notify franchisees of new or modified standards, specifications, and guidelines through periodic amendments or supplements to the Franchise Operations Manual or through other written communication.
Kidokinetics estimates that approximately 30% to 80% of a franchisee's expenditures for leases and purchases in establishing their Kidokinetics Business will be from Kidokinetics or from other approved suppliers or under their specifications. Kidokinetics also estimates that approximately 25% to 30% of a franchisee's expenditures on an ongoing basis will be from Kidokinetics or from other approved suppliers or under their specifications. Purchases of unapproved products or from unapproved suppliers in violation of the Franchise Agreement will entitle Kidokinetics to, among other things, terminate the Franchise Agreement.