What is the minimum royalty fee for a Kidokinetics franchise during months 13 to 24 of operation?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ollows:
| Timeframe | Minimum Royalty |
|---|---|
| First 12 months (Beginning after the Grace | $600 per month |
| Period Expiration) | $600 per month |
| Months 13 to 24 | $800 per month |
| Months 25+ | $1,000 per |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are obligated to pay a minimum royalty fee. The amount varies depending on the timeframe of operation. For months 13 to 24, the minimum royalty fee is $800 per month.
This means that even if 8% of a franchisee's gross sales is less than $800 in a given month during months 13-24, they must still pay Kidokinetics $800. This minimum royalty ensures that Kidokinetics receives a baseline income from each franchise location, regardless of its sales performance.
It's important to note that this minimum royalty is in addition to other fees, such as the brand development fund contribution and technology fee. Also, the minimum royalty fee may be subject to adjustment based on changes to the Consumer Price Index (CPI) in the United States, potentially increasing the financial obligation for franchisees over time.