What information can Kidokinetics access from a franchisee's management software and other computer systems?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics may 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. This includes, but is not limited to, information concerning Gross Sales. Franchisees must also provide Kidokinetics with usernames, temporary passwords, access codes, and IP addresses to facilitate this access. There are no contractual limitations on Kidokinetics's right to access this information.
Kidokinetics also requires franchisees to use proprietary software that handles scheduling, accounting, and inventory. The information collected by this software is considered Kidokinetics's confidential information. Franchisees must obtain the necessary computer hardware to implement this software and comply with all specifications and standards set by Kidokinetics. Franchisees are also required to participate in any system-wide computer network, intranet system, or extranet system that Kidokinetics implements. This participation may include submitting reports online, viewing and printing portions of the Franchise Operations Manual, downloading approved local advertising materials, and communicating with Kidokinetics and other franchisees.
In practical terms, this means Kidokinetics has extensive access to a franchisee's operational and financial data. This level of access allows Kidokinetics to monitor performance, ensure compliance with system standards, and potentially provide support or identify areas for improvement. However, it also places a significant responsibility on the franchisee to maintain secure and reliable computer systems and to protect the confidentiality of the data. Prospective franchisees should carefully consider the implications of this access and ensure they are comfortable with the level of transparency and control it entails.