Can Kidokinetics promotional programs include minimum and maximum price policies?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may, from time to time, initiate promotional programs for the benefit of all franchisees of the System such as "frequent purchase" card programs or special service discounts.
Franchisee agrees to accept and honor all rebates, giveaways, cards, promotional coupons, or other System-wide offers, as accepted by other franchisees in the System.
These programs may include minimum and maximum price policies, minimum advertised price policies and unilateral price policies.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics' promotional programs may include minimum and maximum price policies. As stated in Item 22, Franchisor may initiate promotional programs for the benefit of all franchisees such as frequent purchase cards or special service discounts. These programs may include minimum and maximum price policies, minimum advertised price policies and unilateral price policies.
This means that Kidokinetics franchisees must adhere to the pricing guidelines established by the franchisor in any promotional programs. This could impact a franchisee's ability to set their own prices for specific promotions, as they must stay within the minimum and maximum price ranges dictated by Kidokinetics.
While this ensures a consistent brand image and pricing strategy across all locations, it also reduces the franchisee's flexibility to respond to local market conditions or competitive pressures with independent pricing decisions. Franchisees should consider how these pricing policies align with their business goals and local market dynamics.