What kind of advertising and promotional materials does Kidokinetics provide?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Marketing
To market your first Kidokinetics Business in your territory, you will pay us $5,000 for an Initial Marketing Package. The Initial Marketing Package for your first territory includes updating the Kidokinetics website and social media to incorporate reference to your Kidokinetics Business, two whip banners, a package of collateral materials, a local press release, and a direct mail marketing campaign targeting institutional client opportunities. For each additional Franchise you open, you will pay $1,000 for an Initial Marketing Package that includes direct mail marketing to institutional clients within the additional territory for your Kidokinetics Business.
Local Marketing Requirement
After you open your Kidokinetics Business, you are required to spend the greater of $500 or 2% of Gross Sales per month on a rolling 12-month average on local advertising and marketing to promote your Kidokinetics Business ("Local Marketing Requirement"). The Local Marketing Requirement applies once for a single franchisee operating up to four Kidokinetics Businesses so long as they are operated by the same legal entity and have adjacent territories.
You must order sales and marketing material from us or our designated suppliers. It is a material breach of the Franchise Agreement to use other marketing material without obtaining our prior written approval. If you desire to use your own advertising materials, including your own website, you must obtain our prior approval, which may be granted or denied in our sole discretion. We will review your request and we will respond in writing within 30 days from the date we receive all requested information. Our failure to notify you in the specified time frame will be deemed a disapproval of your request. Use of logos, Marks and other name identification materials must follow our approved standards. You may not use our logos, Marks and other name identification materials on items to be sold or services to be provided without our prior written approval.
Brand Development Fund
The brand development fund ("Brand Development Fund") is for marketing, developing, and promoting the System, the Marks and Kidokinetics Franchises. You must pay 2% of your weekly Gross Sales to the Brand Development Fund ("Brand Development Fund Contribution"). Each franchisee will be required to contribute to the Brand Development Fund, but certain franchisees may contribute on a different basis depending on when they signed their Franchise Agreement. Kidokinetics Businesses owned by us will contribute to the Brand Development Fund on the same basis as franchisees, except for one existing affiliate owned Kidokinetics Business.
The Brand Development Fund will be administered by us, or our affiliate or designees, at our discretion, and we may use a professional advertising agency or media buyer to assist us. We will separately account for all of the Brand Development Fund Contributions that we administer; however, we are not required to segregate any of the funds from our other monies.
We have complete discretion on how the Brand Development Fund will be utilized. We may use the Brand Development Fund for local, regional, or national marketing, or any expenditure that we, in our sole discretion, deem necessary or appropriate to promote or improve the System or the Kidokinetics brand. For example, we may use the Brand Development Fund for: (i) developing, maintaining, administering, directing, preparing or reviewing advertising and marketing materials, promotions and programs, including social media management; (ii) public awareness of any of the Marks; (iii) public and consumer relations and publicity; (iv) brand development; (v) research and development of technology, products and services; (vi) website development (including social media) and search engine optimization; (vii) development and implementation of quality control programs; (viii) conducting market research; (ix) changes and improvements to the System; (x) the fees and expenses of any advertising agency we engage to assist in producing or conducting advertising or marketing efforts; (xi) collecting and accounting for Brand Development Fund Contributions; (xii) preparing and distributing financial accountings of the Brand Development Fund; (xiii) conducting quality assurance programs and other reputation management functions; and (xiv) our and our affiliates' expenses associated with direct or indirect labor, administrative, overhead, or other expenses incurred in relation to any of these activities. We may use national and/or regional advertising agencies as the source for our advertising materials, or we may prepare them in-house.
We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We do not guarantee that advertising expenditures from the Brand Development Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Brand Development Fund Contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to participate in both initial and ongoing local marketing efforts. As part of the initial marketing for the first Kidokinetics business, franchisees must pay $5,000 for an Initial Marketing Package. This package includes updating the Kidokinetics website and social media to include the franchisee's business, two whip banners, collateral materials, a local press release, and a direct mail marketing campaign targeting institutional client opportunities. For each additional franchise opened, the franchisee will pay $1,000 for an Initial Marketing Package that includes direct mail marketing to institutional clients within the additional territory.
After opening, franchisees must spend the greater of $500 or 2% of gross sales per month, calculated as a rolling 12-month average, on local advertising and marketing. Franchisees are required to order sales and marketing materials from Kidokinetics or its designated suppliers and must obtain prior written approval to use any other marketing materials. This approval process includes a 30-day review period by Kidokinetics, and failure to respond within this timeframe is considered a disapproval. Franchisees must adhere to Kidokinetics's standards for logos, marks, and other name identification materials, and they cannot use these on items for sale or services without prior written approval.
Kidokinetics also retains significant control over internet marketing. Franchisees need written approval to establish any online presence for their Kidokinetics business, including websites and social media. If approval is granted, franchisees must adhere to Kidokinetics's system standards and utilize provided templates. Kidokinetics reserves the right to access and manage franchisees' social media accounts to ensure brand consistency and make necessary upgrades or posts. Franchisees are required to obtain paid internet advertising services through third parties, with the fees potentially creditable towards their Local Marketing Requirement. Kidokinetics maintains the sole right to market on the Internet, including the use of websites, domain names, search engines, and other online marketing tools.
Kidokinetics also has a Brand Development Fund that can be used for local, regional, or national marketing, or any expenditure that Kidokinetics deems necessary or appropriate to promote or improve the System or the Kidokinetics brand. Examples of how the Brand Development Fund may be used include developing advertising and marketing materials, public relations, brand development, website development, and market research. Kidokinetics is not obligated to spend any amount on advertising in the geographical area where the franchisee is located and does not guarantee that advertising expenditures from the Brand Development Fund will benefit any franchisee directly.