Who pays for upgrades, additions, changes, modifications, substitutions, and/or replacements to the Computer System or Required Software for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Computer Systems.
Kidokinetics
- 11.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems. There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System. Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
- 11.3.3.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is responsible for covering the costs of all upgrades, additions, changes, modifications, substitutions, and/or replacements to the Computer System or Required Software. The franchisee must install and maintain management software, required applications, and a computer system that meets Kidokinetics's standards at their own expense. This includes items such as an office computer, tablet, phone, fax machine, smartphone, and potentially a custom point-of-sale (POS) system if Kidokinetics implements one in the future.
Kidokinetics may also require franchisees to install and maintain systems that allow Kidokinetics to electronically access and retrieve information, including gross sales data, from the franchisee's management software and computer systems, again at the franchisee's expense. The franchisee must provide Kidokinetics with access to their computer systems, including usernames, passwords, IP addresses, and other necessary information.
Furthermore, the franchisee is responsible for all technology-related fees and expenses, including the costs of computer hardware and software, internet access, license fees, help desk fees, and website-related fees. Franchisees also must pay a $3,000 Software License Fee for use of Kidokinetics's proprietary software when signing the agreement, or a reduced fee of $1,000 if the agreement is for an additional Kidokinetics business. These stipulations highlight the franchisee's significant financial responsibility for maintaining and upgrading the technology infrastructure necessary to operate the Kidokinetics franchise.