Is the Initial Franchise Fee for a Kidokinetics franchise refundable?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 5: INITIAL FEES]
ITEM 5. INITIAL FEES
Initial Franchise Fee
The initial franchise fee (“Initial Franchise Fee”) for a Kidokinetics Business is $60,000. The Initial Franchise Fee is paid to us in a lump sum when you sign the Franchise Agreement and is non-refundable. The Initial Franchise Fee is payment, in part, for expenses incurred by us in furnishing assistance and services to you and for costs incurred by us, including general sales and marketing expenses, training, legal, accounting and other professional fees.
We may also allow franchisees, in our discretion, to purchase multiple franchises (up to four) (“Multi-Franchise”). If you purchase a Multi-Franchise, you will enter into separate Franchise Agreements for each Franchise and pay a reduced Initial Franchise Fee for the additional Franchises: (a) $60,000 for the first Franchise Agreement; (b) $40,000 for the second Franchise Agreement; and (c) $35,000 under the third and fourth Franchise Agreements.
We currently offer a reduced Initial Franchise Fee for veterans. Under this program, honorably discharged United States veterans or their spouses receive a 5% discount on our Initial Franchise Fee for each Kidokinetics Franchise they purchase. You are required to provide us with a copy of your DD214 to receive this discount.
The Initial Franchise Fee is uniform for all franchisees offered a Franchise under this Franchise Disclosure Document as described above. During our last fiscal year which ended December 31, 2023, we collected Initial Franchise Fee ranging from $17,500 (for a Franchise sold to one of our officers) to $60,000.
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the initial franchise fee is non-refundable. The standard initial franchise fee for a Kidokinetics business is $60,000, which must be paid in a lump sum when the Franchise Agreement is signed. This fee covers the expenses Kidokinetics incurs to provide assistance and services to the franchisee, including general sales and marketing, training, legal, accounting, and other professional fees.
Kidokinetics does offer a reduced initial franchise fee for franchisees who purchase multiple franchises. The fee is $60,000 for the first franchise, $40,000 for the second, and $35,000 for the third and fourth franchises. Additionally, honorably discharged U.S. veterans or their spouses receive a 5% discount on the initial franchise fee for each Kidokinetics franchise they purchase, provided they submit a copy of their DD214 form.
The FDD states that during the fiscal year ending December 31, 2023, the initial franchise fees collected ranged from $17,500 to $60,000. The lower fee was for a franchise sold to one of Kidokinetics's officers. While the initial franchise fee itself is non-refundable, prospective franchisees should carefully review the Franchise Agreement and discuss any concerns with Kidokinetics before signing, to fully understand the services and support covered by the fee.