How often can Kidokinetics implement a CPI-related fee adjustment?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Also, any fee expressed as a fixed dollar amount is subject to adjustment based on changes to the Consumer Price Index ("CPI") in the United States.
We may periodically review and increase these fees based on changes to the CPI (in addition to any other increase), but only if the increase to the CPI is more than 5% higher than the corresponding CPI in effect on: (a) the effective date of your Franchise Agreement (for the initial fee adjustments); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments).
We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective.
We will implement no more than one CPI-related fee adjustment during any calendar year.
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics can adjust fixed dollar amount fees based on changes in the Consumer Price Index (CPI). However, these adjustments are not made arbitrarily or frequently.
Kidokinetics may review and increase fees based on CPI changes, but only if the CPI increase is more than 5% higher than the CPI in effect either on the effective date of the Franchise Agreement for initial adjustments, or on the date of the last fee adjustment for subsequent adjustments. This threshold ensures that only significant inflationary changes trigger a fee adjustment.
Importantly, Kidokinetics will implement no more than one CPI-related fee adjustment during any calendar year. Furthermore, Kidokinetics must notify franchisees of any CPI adjustment at least 60 days before the adjustment takes effect, providing franchisees with advance notice to prepare for the change. This policy provides some predictability for franchisees in managing their costs and budgeting.