What is the Proprietary Software in the context of a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Agreement is to implement such Computer Systems, including all software and hardware, Franchisor requires.
- C. Franchisor's affiliate has developed the KIDOLINK business management software, for which Franchisor has the contractual right to sublicense, to be utilized by Franchisee in connection with the Franchised Business ("KIDOLINK Software"). The KIDOLINK software provides assistance with the management of client leads and data, sales records and documentation, inventory control, marketing efforts, administrative matters, and customer service for Franchisee and Franchisee's employees.
- D. Franchisor may also, from time to time, whether itself or through its designees develop customized software for Franchisee's use in connection with the Franchised Business ("Customized Software"). Franchisee may, at the discretion of Franchisor, be required to purchase and use the Customized Software. Whether Franchisee is required to, or otherwise elects to, use the Customized Software, Franchisee agrees to abide by the terms of this Agreement with regards to any Customized Software. The KIDOLINK Software and Customized Software will be referred to collectively in this Agreement as the "Proprietary Software."
- E. Guarantors agree to personally, and jointly and severally, guaranty Franchisee's obligations and covenants under this Agreement and to be bound by each provision as though each were the Franchisee.
- F.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the Proprietary Software consists of the KIDOLINK business management software and any Customized Software that Kidokinetics may develop. The KIDOLINK software assists with managing client leads and data, sales records and documentation, inventory control, marketing efforts, administrative matters, and customer service.
Franchisees are required to implement computer systems, including all software and hardware, as required by Kidokinetics. Franchisees are granted a personal, limited, non-assignable, non-transferrable, non-exclusive license to use the KIDOLINK Software during the term of the Franchise Agreement. Franchisees are prohibited from customizing the KIDOLINK Software and must use it solely for their internal needs in operating the Franchised Business.
Franchisees acknowledge that they have no ownership rights in the KIDOLINK Software, and they must not make it available to any third party unless required by Kidokinetics. Franchisees must use current versions of the KIDOLINK Software, which may include upgrades requiring additional fees.
A Kidokinetics franchisee must pay a Software License Fee of $3,000 for the use of Kidokinetics' proprietary software when signing the Agreement, which is uniform and non-refundable. However, if the Agreement is for an additional Kidokinetics Business, the Software License Fee is reduced to $1,000.