Does the "Physical Education Hourly Rate" for Kidokinetics franchises include the amount paid to the coaches?

According to Kidokinetics's 2024 Franchise Disclosure Document, the "Physical Education Hourly Rate" does include the amount paid to coaches. The hourly rate is what Kidokinetics franchised locations charge to third parties, such as schools and community centers, for physical education programs at their locations. This rate includes both the franchised location's revenue and the compensation for the coaches they employ.

For a prospective franchisee, this means that the reported "Physical Education Hourly Rate" in the financial performance representation reflects the total amount billed to clients, not the net revenue after deducting coach salaries. Understanding this distinction is crucial for accurately assessing potential profitability. Franchisees need to factor in coach payroll expenses when calculating their potential earnings from physical education services.

Kidokinetics emphasizes that individual results may vary, and there is no guarantee that a franchisee will achieve the same financial performance. The FDD also notes that written substantiation for the financial performance representation will be made available to prospective franchisees upon reasonable request, which could provide further clarity on how these rates are calculated and what expenses are included.