What is the Interim Management Fee that Kidokinetics Franchisor may charge?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee an interim management support fee ("Interim Management Fee") until such Manager is properly trained or certified in accordance with Franchisor's requirements.
The Interim Management Fee will be in the amount of 10% percent of Gross Sales earned during the interim management period plus the subsequent three weeks, payable in addition to all regularly occurring fees including Royalty and Brand Development Fund Contributions, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, and be withdrawn from Franchisee's designated bank account.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee's manager is unable to continue in their role or no longer qualifies, the franchisee must notify Kidokinetics and seek approval for a replacement within 30 days. Until a replacement is found, the franchisee must provide interim management for the Kidokinetics business.
Kidokinetics, at its discretion, can provide interim management support and charge an Interim Management Fee until a new manager is properly trained or certified. This Interim Management Fee is 10% of Gross Sales earned during the interim management period, plus the subsequent three weeks.
In addition to the percentage of gross sales, the franchisee is also responsible for all regularly occurring fees, including Royalty and Brand Development Fund Contributions. Furthermore, the franchisee must cover any costs incurred by Kidokinetics for travel, lodging, meals, and other expenses during the interim management period. These fees and costs will be withdrawn from the franchisee's designated bank account.