For a Kidokinetics Multi-Franchise, what is the initial franchise fee for the third and fourth Franchise Agreements?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
payments.
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- Initial Franchise Fee. If you purchase a Multi-Franchise, you will enter into separate Franchise Agreements for each Franchise and pay a reduced Initial Franchise Fee for the additional Franchises: (a) $60,000 for the first Franchise Agreement; (b) $40,000 for the second Franchise Agreement; and (c) $35,000 under the third and fourth Franchise Agreements. These initial fees are described in greater detail in Item 5 of this Franchise Disclosure Document.
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- Initial Investment. See the table for Single Franchises in this Item 7 for more details on the initial investment for the first Kidokinetics Business. In addition to the costs for the first Kidokinetics Business, if you purchase additional Kidokinetics Businesses, you will only pay the Initial Franchise Fee, a reduced Initial Marketing Package Fee of $1,000 for each Kidokinetic Business, a reduced Software License fee of $1,000 for each additional Kidokinetics Business and you must also have an additional $10,000 in Additional Funds. You may also elect to pay the Enhanced Business Coaching and Training Services for an additional Kidokinetics
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–22)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee purchases a Multi-Franchise, they will enter into separate Franchise Agreements for each franchise. The initial franchise fee is reduced for additional franchises. The initial franchise fee for the third and fourth Franchise Agreements is $35,000 each.
This reduced fee for subsequent franchises is a common incentive offered by franchisors to encourage multi-unit ownership. It lowers the upfront investment required for expansion, making it more financially feasible for franchisees to grow their Kidokinetics business.
Prospective franchisees should note that while the initial franchise fee is reduced, other costs such as the Initial Marketing Package Fee and Software License fee are also applicable for each additional Kidokinetics Business, albeit at a reduced rate of $1,000 each. Additionally, franchisees must have an additional $10,000 in funds for each additional Kidokinetics Business. Reviewing Item 5 of the Franchise Disclosure Document, as suggested in Item 7, will provide further details about the initial franchise fee and associated obligations.