Is Kidokinetics liable for expenses incurred by a franchisee due to required modifications?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
to be provided is located within the Territory.
- 8.2. Maintenance of Kidokinetics Business. Franchisee will maintain the Kidokinetics Business and Kidokinetics Business Location to the standards of sanitation, repair and condition required by Franchisor, which standards are specified in the Franchise Operations Manual and other written directives, standards and specifications. Franchisee, at Franchisee's expense, will make such additions, alterations, repairs, refurbishing and replacements as may be required to comply with Franchisor's standards, including, without limitation, periodic repairs or replacement of worn or impaired supplies, equipment, vehicles and signage as Franchisor may direct. Franchisor reserves the right to require Franchisee to wrap the vehicle used in connection with the operation of the Franchised Business in accordance with Franchisor's designated specifications at Franchisee's sole cost and expense.
- 8.3. Equipment and Technology Updates. Franchisee shall make any and all upgrades to equipment, machinery, tools, including, but not limited to, QuickBooks Pro online or such other management software as Franchisor designates, and computer hardware (including an office computer, a tablet computer, a telephone, a fax machine, and a smartphone), software and applications, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.
- 8.4. Trade Dress Modifications. Franchisee is aware that, to maintain and improve the image and reputation of the System, Franchisor, in its sole and absolute discretion, may change and modify identifying elements of the System, including but not limited to, the adoption and use of new vehicle wraps, new color schemes, and new or modified marks (collectively, "Trade Dress Modifications"). Franchisee, upon notice by Franchisor, shall immediately discontinue the use of any Mark that is no longer available to Franchisor or that Franchisor has otherwise discontinued, and substitute a different Mark or Marks as Franchisor directs.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are generally responsible for covering the costs of modifications, maintenance, and upgrades to their Kidokinetics business.
The franchisee is expected to maintain the Kidokinetics business and location to the standards set by Kidokinetics, as detailed in the Franchise Operations Manual and other directives. This includes making necessary additions, alterations, repairs, refurbishing, and replacements at the franchisee's own expense. These expenses could include periodic repairs or replacements of supplies, equipment, vehicles, and signage as directed by Kidokinetics.
Kidokinetics also reserves the right to require franchisees to update equipment, machinery, tools, software (such as QuickBooks Pro), computer hardware, and any related technology at the franchisee's sole expense. Additionally, Kidokinetics may modify identifying elements of the system, such as vehicle wraps or color schemes, with which the franchisee must comply at their own cost. The franchisee is responsible for complying with updates, revisions, modifications, or amendments to the Franchise Operations Manual no later than 30 days after notification, and again, at their sole expense.