What information will the annual accounting for the Kidokinetics Brand Development Fund show?

According to Kidokinetics's 2024 Franchise Disclosure Document, upon written request, franchisees can access an annual accounting for the Brand Development Fund, detailing how the fund's proceeds were spent in the previous year. For the fiscal year ending December 31, 2023, 100% of the Brand Development Fund Contributions were allocated to administration.

This accounting provides Kidokinetics franchisees with transparency regarding the use of the Brand Development Fund, which is funded by 2% of their weekly gross sales. While the FDD specifies that the Brand Development Fund is not audited, the annual accounting offers a basic overview of expenditures. Franchisees can use this information to understand how their contributions are being utilized to support the Kidokinetics brand and system.

It's important to note that Kidokinetics has complete discretion over how the Brand Development Fund is used, including for local, regional, or national marketing, or any expenditure deemed necessary to promote the Kidokinetics brand. The FDD explicitly states that Kidokinetics is not obligated to spend any amount on advertising in the franchisee's specific geographical area, nor is there a guarantee that advertising expenditures will directly benefit any franchisee. This highlights the importance of franchisees understanding the franchisor's broader marketing strategy and how it aligns with their individual business goals.