If Kidokinetics requests, is a franchisee obligated to purchase or lease the Computer System and Required Software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
At Franchisor's request, Franchisee shall purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software.
Franchisee agrees to pay all fees associated with the use of Required Software, which may be payable to Franchisor or Franchisor's approved or designated suppliers.
Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software.
Franchisee agrees, at its own expense, to keep its Computer System in good maintenance and repair and install such upgrades, additions, changes, modifications, substitutions, and/or replacements to Franchisee's Computer System or Required Software as Franchisor directs from time to time in writing.
Franchisee agrees its compliance with this Section 11.3.4 shall be at Franchisee's sole cost and expense.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees are obligated to purchase or lease the Computer System and Required Software if Kidokinetics requests it. The franchisee is responsible for maintaining the Computer System and Required Software at their own expense. This includes installing updates, supplements, modifications, or enhancements to the Required Software. Franchisees must also pay all associated fees. Kidokinetics may create or designate proprietary software programs and will retain a proprietary interest in software components customized using the Computer System or Required Software.
Kidokinetics franchisees must install and maintain a computer system that adheres to Kidokinetics' standards and specifications. This includes items such as an office computer, a tablet computer, a telephone, a fax machine, and a smartphone. If Kidokinetics makes it part of their proprietary operating system in the future, franchisees must also have a custom and proprietary point of sale system (POS System). The computer system also includes printers and other peripheral hardware or devices, archival back-up systems, Internet access mode and speed, and physical, electronic, and other security systems.
These requirements ensure that all Kidokinetics locations operate with a consistent technology infrastructure, allowing for efficient communication, data management, and adherence to brand standards. The franchisee bears the financial responsibility for these technology requirements, including hardware, software, internet access, license fees, and website-related fees. This can represent a significant ongoing cost for the franchisee. Franchisees should clarify with Kidokinetics what the typical costs are for the computer system and required software.