What is the initial KIDOLINK Software License Fee for a second Kidokinetics franchised business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
include an upgrade to a version requiring an additional fee after the effective date of this Agreement.
B. FEES
- (a) Initial KIDOLINK Software License Fee. Franchisee must pay to Franchisor $3,000 for Franchisee's first Franchised Business and $1,000 for Franchisee's second or greater Franchised Business as a one-ti
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, a franchisee must pay an initial KIDOLINK Software License Fee. For the first Kidokinetics franchised business, the fee is $3,000. However, for a second or subsequent Kidokinetics franchised business, the initial software license fee is reduced to $1,000. This fee is a one-time payment due upon the execution of the Franchise Agreement.
In practical terms, this means that if a franchisee decides to expand and open another Kidokinetics location, they will benefit from a lower initial software license fee compared to their first location. This reduced fee can help lower the initial investment required for the second franchise.
It's important to note that in addition to the initial software license fee, franchisees are also required to pay a continuing monthly software license fee for the right to use the KIDOLINK software. Currently, this monthly fee is $475, and Kidokinetics reserves the right to increase this fee by up to 10% in any calendar year. Franchisees should factor in both the initial and ongoing software license fees when evaluating the overall cost of investing in a Kidokinetics franchise.