Is Kidokinetics obligated to develop or designate computer software programs for franchisees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
isee's computer, tablet or smartphone.
- 11.3.3. Franchisor shall have the right, but not the obligation, to develop or designate: (i) computer software programs Franchisee must use in connection with any component of the Computer System (the "Required Software"), which Franchisee shall install at Franchisee's expense; (ii) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee shall install at Franchisee's expense; (iii) the tangible media upon which Franchisee records data; and (iv) the database file structure of the Computer System. Franchisee shall be responsible for the payment of all fees associated with the Required Software, Computer System and POS System.
- 11.3.4. At Franchisor's request, Franchisee shall purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software. Franchisee agrees to pay all fees associated with the use of Required Software, which may be payable to Franchisor or Franchisor's approved or designated suppliers. Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software. Franchisee agrees, at its own expense, to keep its Computer System in good maintenance and repair and install such upgrades, additions, changes, modifications, substitutions, and/or replacements to Franchisee's Computer System or Required Software as Franchisor directs from time to time in writing. Franchisee agrees its compliance with this Section 11.3.4 shall be at Franchisee's sole cost and expense.
- 11.3.5. Franchisor may now or in the future create or designate a proprietary software program, and Franchisor will retain a proprietary interest in all databases, lists, templates, programs and any other software components that have been created and/or customized by Franchisor using the Computer System and/or Required Software (the "Proprietary Software").
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics has the right, but not the obligation, to develop or designate computer software programs that franchisees must use. These programs are related to any component of the computer system, referred to as "Required Software." The franchisee is responsible for installing this software at their own expense. Kidokinetics also has the right, but not the obligation, to develop updates, supplements, modifications, or enhancements to the Required Software, which the franchisee must also install at their own expense.
Kidokinetics may create or designate a proprietary software program and will retain a proprietary interest in all databases, lists, templates, programs, and any other software components created or customized by Kidokinetics using the Computer System and/or Required Software, known as the "Proprietary Software." Franchisees are responsible for all fees associated with the Required Software, Computer System, and POS System.
Franchisees must purchase or lease and maintain the Computer System and Required Software at Kidokinetics's request. They also agree to pay all fees associated with the use of Required Software, which may be payable to Kidokinetics or its approved suppliers. Franchisees must strictly comply with Kidokinetics's standards and specifications for all items associated with their Computer System and any Required Software and keep their Computer System in good maintenance and repair, installing any upgrades, additions, changes, modifications, substitutions, and/or replacements as directed by Kidokinetics in writing, all at their own expense.