Does Kidokinetics offer any express or implied warranties regarding the software provided to franchisees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee must obtain the computer hardware necessary to implement the Proprietary Software into the Kidokinetics Business, and comply with all specifications and standards prescribed by Franchisor regarding the Proprietary Software as provided in the Franchise Operations Manual. This Proprietary Software will be Franchisor's proprietary product, and the information collected therefrom will be deemed Franchisor's confidential information. Franchisee agrees to sign Franchisor's then-current form of software license agreement for any Proprietary Software Franchisor may now or in the future create, pay any license fees associated with use of Proprietary Software, and upgrade the Proprietary Software as Franchisor designates.
- 11.3.6.
Franchisee is required to participate in any System-wide computer network, intranet system, or extranet system that Franchisor implements and may be required by Franchisor to use such computer network, intranet system, or extranet system to, among other things: (i) submit Franchisee's reports due under this Agreement to Franchisor online; (ii) view and print portions of the Franchise Operations Manual, including any updates or modifications thereto; (iii) download approved local advertising materials; (iv) communicate with Franchisor and other System franchisees; and (v) to complete any initial or ongoing training.
Franchisee agrees to use the facilities of any such computer network, intranet system or extranet system in strict compliance with the standards, protocols, and restrictions that Franchisor included in the Franchise Operations Manual, including those related to the encryption of confidential information and prohibitions against the transmission of libelous, derogatory or defamatory statements.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, the document does not explicitly state any express or implied warranties regarding the proprietary software. However, it does state that franchisees must obtain the necessary computer hardware to implement the proprietary software and comply with all specifications and standards prescribed by Kidokinetics, as provided in the Franchise Operations Manual. Franchisees are also required to sign Kidokinetics' then-current form of software license agreement for any proprietary software Kidokinetics may now or in the future create, pay any license fees associated with the use of proprietary software, and upgrade the proprietary software as Kidokinetics designates.
Furthermore, franchisees are required to participate in any system-wide computer network, intranet system, or extranet system that Kidokinetics implements and may be required by Kidokinetics to use such systems to submit reports, view and print portions of the Franchise Operations Manual, download approved local advertising materials, communicate with Kidokinetics and other system franchisees, and complete any initial or ongoing training. Franchisees must use these systems in strict compliance with the standards, protocols, and restrictions that Kidokinetics includes in the Franchise Operations Manual.
Prospective franchisees should carefully review the Software License Agreement (Exhibit H) mentioned in Item 22 of the FDD and consult with legal counsel to understand their rights and obligations regarding the software. It would be prudent to ask Kidokinetics directly about any warranties, guarantees, or service level agreements associated with the software to fully understand the support and reliability they can expect.