Does Kidokinetics have an obligation to establish prices for my Kidokinetics Business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Reserve the right to establish minimum and maximum resale prices for use with multiarea marketing programs and special price promotions as allowed by law.
We have no obligation to: (i) develop new products or services to be offered by you to your customers; (ii) hire or train employees; (iii) improve or develop the Kidokinetics Business; (iv) establish prices; (v) establish or use administrative, bookkeeping, accounting or inventory control procedures; or (vi) resolve operating problems encountered by you in the operation of your Kidokinetics Business. We
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics is not obligated to establish prices for your Kidokinetics business. However, Kidokinetics retains the right to set minimum and maximum resale prices for multi-area marketing programs and special price promotions, as permitted by law.
This means that while you generally have the freedom to set your own prices, Kidokinetics can intervene in specific situations like larger marketing campaigns or promotions to ensure price consistency across multiple franchise locations. This is a fairly common practice in franchising, allowing the franchisor to maintain brand standards and competitiveness.
As a franchisee, it's important to understand the conditions under which Kidokinetics might set prices. You should inquire about the specific types of marketing programs or promotions where Kidokinetics might exercise this right. Understanding these limitations will help you plan your pricing strategy and avoid potential conflicts with the franchisor.