If Kidokinetics requests, must a franchisee purchase or lease the Computer System?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Computer Systems.
Kidokinetics
- 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. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems. There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System. Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
- 11.3.3. Franchisor shall have the right, but not the obligation, to develop or designate: (i) computer software programs Franchisee must use in connection with any component of the Computer System (the "Required Software"), which Franchisee shall install at Franchisee's expense; (ii) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee shall install at Franchisee's expense; (iii) the tangible media upon which Franchisee records data; and (iv) the database file structure of the Computer System.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to install and maintain a Computer System at their own expense. This system must comply with Kidokinetics's standards and specifications. The Computer System includes an office computer, a tablet computer, a telephone, a fax machine, and a smartphone. It also includes a custom and proprietary point of sale system (POS System), if Kidokinetics makes such a POS System part of its proprietary operating system in the future, printers and other peripheral hardware or devices, archival back-up systems, Internet access mode and speed, and physical, electronic, and other security systems.
Kidokinetics may also require franchisees to install and maintain systems that allow Kidokinetics to electronically access and retrieve any information stored in the franchisee's management software and other computer systems, including information concerning Gross Sales. Franchisees must also provide Kidokinetics with a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Kidokinetics's access to the data generated by and stored in the franchisee's computer, tablet, or smartphone.
Franchisees are also required to participate in any System-wide computer network, intranet system, or extranet system that Kidokinetics implements. They may be required to use these systems to submit reports, view and print portions of the Franchise Operations Manual, download approved local advertising materials, communicate with Kidokinetics and other franchisees, and complete training. Franchisees must also have and maintain adequate hardware and software to access the Internet at the speed required by Kidokinetics and maintain an electronic mail account with an Internet service provider acceptable to Kidokinetics.