Does Kidokinetics have an obligation to develop or designate computer software programs for the Computer System?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics has the right, but not the obligation, to develop or designate computer software programs for the Computer System. If Kidokinetics does develop or designate such software, franchisees must install it at their own expense. These programs are referred to as "Required Software."
Kidokinetics also has the right, but not the obligation, to create updates, supplements, modifications, or enhancements to the Required Software, which the franchisee would also need to install at their own expense. Additionally, Kidokinetics can specify the tangible media for data recording and the database file structure of the Computer System.
The franchisee is responsible for all fees associated with the Required Software, Computer System, and POS System. At Kidokinetics' request, the franchisee must purchase or lease and maintain the Computer System and Required Software, complying with Kidokinetics' standards and specifications. The franchisee must also keep the Computer System in good repair and install any directed upgrades or modifications at their own expense.