What is the initial franchise fee for the third and fourth Kidokinetics franchises purchased under a Multi-Franchise agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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 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 and fourth franchises purchased under a Multi-Franchise agreement is $35,000 each. This reduced fee is part of Kidokinetics's incentive for franchisees who commit to opening multiple locations. The initial franchise fee is paid in a lump sum when the franchisee signs the Franchise Agreement and is non-refundable.
This multi-franchise option allows franchisees to expand their Kidokinetics business more affordably compared to paying the full initial franchise fee for each location. The reduced fee for the third and fourth franchises can significantly lower the upfront investment required to grow within a specific territory or market.
It is important to note that while the initial franchise fee is reduced for multi-franchise agreements, other fees such as the Initial Marketing Package and Software License Fee still apply to each additional Kidokinetics business opened, though at a reduced rate compared to the first franchise. Prospective franchisees should carefully consider these additional costs when evaluating the financial implications of a multi-franchise agreement.