What is the initial franchise fee for the second Kidokinetics franchise agreement when purchasing a Multi-Franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Initial Franchise Fee. 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. These initial fees are described in greater detail in Item 5 of this Franchise Disclosure Document.
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- Initial Investment. See the table for Single Franchises in this Item 7 for more details on the initial investment for the first Kidokinetics Business. In addition to the costs for the first Kidokinetics Business, if you purchase additional Kidokinetics Businesses, you will only pay the Initial Franchise Fee, a reduced Initial Marketing Package Fee of $1,000 for each Kidokinetic Business, a reduced Software License fee of $1,000 for each additional Kidokinetics Business and you must also have an additional $10,000 in Additional Funds. You may also elect to pay the Enhanced Business Coaching and Training Services for an additional Kidokinetics Business.
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- This is an estimate of your initial start-up expenses for operating under multiple franchise agreements in multiple territories. You should review these figures carefully with a business advisor before making any decision to purchase the Fra
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee purchases a Multi-Franchise, they will enter into separate Franchise Agreements for each franchise. The initial franchise fee for the second Kidokinetics franchise agreement is $40,000. This fee is part of a tiered structure where the initial fee decreases with each additional franchise purchased. The initial franchise fee for the first franchise agreement is $60,000, and the fee for the third and fourth franchise agreements is $35,000 each.
In addition to the initial franchise fee, franchisees purchasing additional Kidokinetics businesses must also pay a reduced Initial Marketing Package Fee of $1,000 for each business and a reduced Software License fee of $1,000 for each additional Kidokinetics Business. They must also have an additional $10,000 in additional funds. These additional costs should be factored into the overall investment when considering a multi-franchise purchase.
It is important to note that all expenditures paid to Kidokinetics or its affiliates are uniform and non-refundable under any circumstances once paid. Therefore, prospective franchisees should carefully consider their decision before making any payments. The FDD advises that potential franchisees review these figures carefully with a business advisor before making any decision to purchase the franchise(s).