If a regional advertising cooperative is established, is a Kidokinetics franchisee required to participate?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
gional Advertising and Promotional Cooperatives. Franchisor will have the right, in Franchisor's discretion, to designate any geographical area for purposes of establishing a regional advertising and promotional cooperative ("Cooperative"), and to determine whether a Cooperative is applicable to the Kidokinetics Business. 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if Kidokinetics establishes a regional advertising and promotional cooperative applicable to a franchisee's business, the franchisee must participate in the cooperative.
The franchisee's contributions to the cooperative will be credited towards their local marketing requirement. The cooperative contributions will not exceed the local marketing requirement unless a majority of the cooperative votes to increase that requirement.
Kidokinetics may grant a franchisee an exemption from the requirement of membership in a cooperative for any length of time, at its sole discretion, upon written request from the franchisee stating reasons supporting such exemption. Kidokinetics's decision concerning the request for exemption will be final.