If Kidokinetics designates Required Software, who is responsible for the installation costs?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.3. Equipment and Technology Updates.
Franchisee shall make any and all upgrades to equipment, machinery, tools, including, but not limited to, QuickBooks Pro online or such other management software as Franchisor designates, and computer hardware (including an office computer, a tablet computer, a telephone, a fax machine, and a smartphone), software and applications, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.
- 11.3.1.
Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2.
Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales.
Franchisee shall pay all fees and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform, web page design, and fees related to exposure on Franchisor's website.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with installing and maintaining required software. Specifically, the franchisee must install and maintain management software, required applications, and a computer system that adheres to Kidokinetics' standards and specifications, all at the franchisee's sole expense. This includes items such as an office computer, tablet, phone, fax machine, and smartphone.
Kidokinetics may also require the franchisee to install and maintain systems that allow Kidokinetics to electronically access and retrieve information stored in the franchisee's management software and other computer systems. The franchisee must provide Kidokinetics with access codes and usernames to facilitate this access. There are no contractual limitations on Kidokinetics' right to access information and data on the franchisee's POS system and computer system.
Furthermore, the franchisee is responsible for all fees and expenses related to technology required by the Franchise Agreement. This includes, but is not limited to, the costs of computer hardware and software, internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform, web page design, and fees related to exposure on Kidokinetics' website. This allocation of costs is typical in franchising, where franchisees generally bear the expenses of technology and software necessary to operate the business according to the franchisor's standards.