What is the low-end estimate for the initial franchise fee for a Kidokinetics multi-franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of | Amou | unt | Method | | To Whom | |-----------------------------------------------------------------------------------|-----------|-----------|--------------------------------------|--------------------|--------------------------------------| | Expenditure | Low | High | of Payment | When Due | Payment is to be Paid | | Initial Franchise | $100,000 | $170,000 | Upon Signing the Franchise Agreement | Us | Upon Signing the Franchise Agreement | | Fee (1) | | | | | | | Initial Investment for First Kidokinetics Business (2) | $50,500 | $84,700 | Per Table Above | Per Table Above | Per Table Above | | Initial Investment for Additional Kidokinetics Businesses (2) | $12,000 | $19,500 | Per Table Above | Per Table Above | Per Table Above | | TOTAL ESTIMATED INITIAL INVESTMENT FOR TWO FRANCHISES (2) | $162,500 | $204,200 | Per Table Above | Per Table Above | Per Table Above |
| Type of | Amor | unt | Method | To Whom | |
|---|---|---|---|---|---|
| Expenditure | Low | High | of Payment | When Due | Payment is to be Paid |
| TOTAL ESTIMATED INITIAL INVESTMENT FOR THREE FRANCHISES (2) | $209,500 | $258,700 | Per Table Above | Per Table Above | Per Table Above |
| TOTAL ESTIMATED INITIAL INVESTMENT FOR FOUR FRANCHISES (2) | $256,500 | $313,200 | Per Table Above | Per Table Above | Per Table Above |
Notes:
These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating m
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the total estimated initial investment for a multi-franchise varies depending on the number of franchises. For two franchises, the low-end total estimated initial investment is $162,500. For three franchises, the low-end total estimated initial investment is $209,500. For four franchises, the low-end total estimated initial investment is $256,500. These figures include the initial franchise fee and other startup costs.
Specifically, the initial franchise fee structure for a multi-franchise is as follows: $60,000 for the first franchise agreement, $40,000 for the second franchise agreement, and $35,000 for the third and fourth franchise agreements. In addition to the initial franchise fee, franchisees purchasing additional Kidokinetics businesses must pay a reduced initial marketing package fee of $1,000 for each additional business, a reduced software license fee of $1,000 for each additional business, and have an additional $10,000 in additional funds.
Prospective franchisees should note that these are estimated initial expenses and that Kidokinetics does not offer direct or indirect financing for these items. All expenditures paid to Kidokinetics or its affiliates are non-refundable once paid. Franchisees should carefully review these figures with a business advisor before making any decision to purchase a franchise.
It is important to consider that the initial investment for the first Kidokinetics business ranges from $50,500 to $84,700, while the initial investment for additional Kidokinetics businesses ranges from $12,000 to $19,500. These costs, combined with the franchise fees and other required payments, contribute to the total estimated initial investment for a multi-franchise.