What is the Initial Franchise Fee for the third or fourth Kidokinetics franchise purchased under a Multi-Franchise agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 Agree
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 for the third or fourth franchise purchased under a Multi-Franchise agreement is $35,000. This reduced fee is part of an incentive for franchisees who commit to opening multiple Kidokinetics locations. The initial franchise fee is paid in a lump sum when the franchisee signs the Franchise Agreement and is non-refundable.
This fee covers Kidokinetics's expenses related to providing assistance and services to the franchisee. These services include general sales and marketing support, training, and covering legal, accounting, and other professional fees. The reduced fee for multi-franchise agreements reflects the economies of scale Kidokinetics achieves by onboarding multiple units under the same owner.
It is important to note that while the initial franchise fee is reduced for the third and fourth locations, other fees such as the Initial Marketing Package and Software License Fee are still applicable for each additional Kidokinetics Business. Specifically, the Initial Marketing Package is $1,000 for each additional franchise, and the Software License Fee is also $1,000 for each additional franchise. Unlike the first franchise, the Enhanced Business Coaching and Training Services are optional for additional Kidokinetics businesses.
Prospective franchisees should carefully consider the financial implications of opening multiple locations, including the initial franchise fees and other associated costs. Understanding the terms and conditions of the Multi-Franchise agreement is crucial for making an informed investment decision.