What is the minimum royalty fee per month for a Kidokinetics franchise starting in month 25?
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, the minimum royalty fee changes over time. For the first 12 months after the grace period expires, the minimum royalty is $600 per month. This increases to $800 per month for months 13 through 24.
Starting in month 25, the minimum royalty fee increases to $1,000 per month. This means that a Kidokinetics franchisee must pay either 8% of their gross sales or $1,000, whichever is greater.
It's important to note that these minimum royalty fees are subject to potential adjustments based on changes to the Consumer Price Index (CPI). Kidokinetics may increase these fees if the CPI increases by more than 5% compared to the CPI in effect either when the Franchise Agreement was signed or when the last fee adjustment was implemented. Kidokinetics will provide franchisees with at least 60 days' notice before any CPI-related fee adjustment takes effect, and they will only implement one such adjustment per calendar year.