What is the monthly technology fee used for imputed adjustments for Kidokinetics?

According to Kidokinetics's 2024 Franchise Disclosure Document, a technology fee of $475 per month is used for imputed adjustments. This adjustment is applied to the Dallas Location, North Carolina Location, and NW Broward Location, which operate under a prior form of Franchise Agreement with different fee structures. These locations initially paid a reduced Royalty Fee and did not pay a Brand Development Fund Contribution or technology fees.

The purpose of imputing this technology fee, along with other adjustments like the difference in Royalty Fees and a Brand Development Fund Contribution, is to reflect the fees and costs that new Kidokinetics franchisees will typically pay under the current franchise agreement. This provides a more accurate financial picture for prospective franchisees by standardizing the financial data across all locations, regardless of their original agreement terms.

It's important to note that Kidokinetics does not assess an additional technology fee or require the Local Marketing Requirement for a single franchisee entity operating up to four contiguous territories. This could be a significant benefit for franchisees who plan to expand their operations within a specific region. The illustrative adjustments, including the technology fee, are based on historical information and are intended to present financial projections. However, these projections rely on certain assumptions, and any changes to these assumptions could materially alter the projections.