What is the minimum monthly Local Advertising spend for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ER FEES
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | The greater of 8% of Gross Sales (2) or the "Minimum Royalty" (3) | Due on Wednesday of\neach week for percentage-based Royalty; Monthly for the Minimum Royalty | The "Royalty" is based on "Gross Sales" during the previous week. Your Royalty is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum amount on local advertising. Specifically, a Kidokinetics franchisee must spend the greater of $500 per month, or 2% of Gross Sales per month on a rolling 12-month average.
This local advertising spend is mandated to support the marketing and promotion of the Kidokinetics business within the franchisee's territory. The funds are intended to be used for local advertising and marketing purposes, allowing franchisees to reach potential customers in their specific area.
It's important to note that the required local advertising spend is calculated monthly, and the franchisee must allocate the greater of the two amounts, either the fixed $500 or the percentage of gross sales. This ensures that franchisees are consistently investing in local marketing efforts to drive business growth. Franchisees should carefully track their gross sales to accurately calculate their local advertising obligations and ensure compliance with the franchise agreement.