How much notice will Kidokinetics provide before a CPI-related fee adjustment becomes effective?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics will provide franchisees with at least 60 days' notice before any fee adjustment related to changes in the Consumer Price Index (CPI) becomes effective. This advance notice allows franchisees time to prepare for the adjustment.

Kidokinetics may review and increase certain fees based on changes to the CPI, but only if the increase is more than 5% higher than the CPI in effect either on the effective date of the Franchise Agreement for initial adjustments, or on the date of the last fee adjustment for subsequent adjustments. This threshold provides some stability and prevents frequent small adjustments based on minor CPI fluctuations.

Kidokinetics will implement no more than one CPI-related fee adjustment during any calendar year. This limitation helps franchisees budget and plan, as they will not have to deal with multiple CPI-related fee changes within the same year. This is a fairly common practice in franchising, as it allows the franchisor to adjust for inflation while providing predictability for the franchisee.