What is the 'Location Fee' for the North Carolina Kidokinetics location?

According to Kidokinetics's 2024 Franchise Disclosure Document, the North Carolina location paid a 'Location Fee' of $3,181 during the 2023 reporting period. This fee represented 2.40% of the location's gross sales, which totaled $132,773 for the year. The FDD specifies that this 'Location Fee' represents actual amounts paid to locations where Kidokinetics programs are held, including revenue and profit-sharing fees and other rental fees charged by these facilities.

It's important to note that the North Carolina location operates under a prior form of Franchise Agreement, which includes alternative fee structures. This means the location pays a reduced Royalty Fee and does not pay a Brand Development Fund Contribution or technology fees, which are standard under the current franchise agreement. To provide a clearer picture of what a franchisee would pay under the current agreement, Kidokinetics has imputed franchise-related adjustments, including the difference in Royalty Fees, a Brand Development Fund Contribution, and technology fees.

For a prospective franchisee, this information highlights the importance of understanding the specific fee structure applicable to their franchise agreement. While the 'Location Fee' provides insight into expenses related to program locations, it's crucial to consider the other fees and expenses outlined in the FDD, such as royalties, advertising, and technology fees, to accurately assess the overall cost of operating a Kidokinetics franchise. Additionally, the FDD notes that the disclosed operating expenses do not include all potential operating expenses, such as owner and manager payroll, so a thorough independent investigation is essential.