How often will a Kidokinetics franchisee pay the Royalty and Brand Development Fund?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
of our website.
8-4
- 5.5.3. Brand Development Fund Contribution. Franchisee shall pay to Brand Development Fund (as defined in Section 12.8) without offset, credit, or deduction of any nature, two percent (2%) of Gross Sales ("Brand Development Fund Contribution"). Brand Development Fund Contributions shall be paid at the same time and in the same manner as Royalty as provided in Section 5.2.1.
- 5.5.4. Annual Conference Fee. Franchisee shall pay to Franchisor the then-current annual conference fee. Payment is due upon receipt of written notice that such conference is being held. Franchisee shall pay the Annual Conference Fee regardless of whether Franchisee registers for or attends the annual conference. The annual conference fee may be increased system wide, in our discretion, should costs to conduct the annual conference increase. Franchisee is responsible for its representatives' travel costs and accommodations.
- 5.5.5. Sales Support Fee. If requested by Franchisee, Franchisor will provide sales support for the Kidokinetics Business and contact various potential customers in an effort to drive sales for the Kidokinetics Business. Franchisee shall pay Franchisor a fee for all potentials customer that Franchisor contacts using its sales support services becomes a customer of the Kidokinetics Business equal to 5% of the Gross Sales generated for a period of 90 days ("Sales Support Fee". Franchisee may terminate these services upon written notice to Franchisor; however, Franchisee will continue to pay the Sales Support Fee for any customers generated during the period when Franchisor provided the sales support to Franchisee.
5.6. Late Fee, Interest, and Insufficient Funds Fee.
- 5.6.1. Late Fee. If the Royalty, Brand Development Fund, Technology Fee or any amounts due to us or our affiliates, or Gross Sales Reports are not received by Franchisor as required by this Agreement, Franchisee shall pay to Franchisor, in addition to the overdue amount, a late fee of twenty-five dollars ($25.00) per week for each payment of any amounts owed to Franchisor under this Agreement, or any report due under this Agreement not received when due.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to pay both the Royalty and Brand Development Fund Contribution on a weekly basis. Specifically, these payments are due each Wednesday via an electronic funds transfer program (EFT). The Royalty is calculated as 8% of the Gross Sales from the previous week (Monday through Sunday). Additionally, franchisees must contribute 2% of Gross Sales to the Brand Development Fund.
Kidokinetics requires franchisees to submit Gross Sales Reports every week. These reports are due on the Monday following the close of each reporting week (Saturday through Friday) by 11:00 a.m. The Royalty and Brand Development Fund payments are made in conjunction with the submission of these reports each Wednesday.
It is important for prospective Kidokinetics franchisees to note that failure to make timely payments can result in late fees and interest charges. A late fee of $25.00 per week will be applied to any overdue amounts or unsubmitted reports. Additionally, any unpaid amounts will accrue interest at a rate of 1.5% per month or the highest rate permitted by law, whichever is lower. Franchisees must maintain sufficient funds for the electronic transfers, as any returned checks or denied transfers will incur an Insufficient Funds Fee of $50.00 or the amount charged to Kidokinetics by the bank, whichever is higher.