How much advance notice will Kidokinetics provide to franchisees before a CPI-based fee adjustment becomes effective?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
All fees expressed as a fixed dollar amount in this Franchise Agreement are subject to adjustment based on changes to the Consumer Price Index in the United States. Franchisor may periodically review and increase these fees based on changes to the Consumer Price Index, but only if the increase to the Consumer Price Index is more than 5% higher than the corresponding Consumer Price Index in effect on: (a) the effective date of the Franchise Agreement (for the initial fee adjustments); or (b) the date Franchisor implemented the last fee adjustment (for subsequent fee adjustments). Franchisor will notify Franchisee of any CPI adjustment at least 60 days before the fee adjustment becomes effective. Franchisor will implement no more than one fee adjustment during any calendar year. Notwithstanding the foregoing, the fee adjustments in this Section shall not impact fees which we reserve the right to increase in higher amounts or to adjust more frequently, including but not limited to the Technology Fee.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics will provide franchisees with at least 60 days' notice before any fee adjustments based on changes to the Consumer Price Index (CPI) become effective. This allows franchisees time to prepare for the adjustment.
The CPI adjustments apply to fees expressed as a fixed dollar amount in the Franchise Agreement. However, Kidokinetics will only implement a CPI-based fee adjustment if the increase to the CPI is more than 5% higher than the corresponding CPI in effect either on the effective date of the Franchise Agreement (for initial adjustments) or the date of the last fee adjustment (for subsequent adjustments). Kidokinetics will implement no more than one fee adjustment during any calendar year.
It's important to note that these CPI-based adjustments do not impact all fees. Kidokinetics reserves the right to increase certain fees, such as the Technology Fee, in higher amounts or to adjust them more frequently than the CPI adjustments. Franchisees should be aware of this and factor it into their financial planning.