What should a prospective Kidokinetics franchisee do to determine the costs and expenses they will incur?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- The financial performance representations in Table 2 do not reflect all expenses such as taxes and amortization that must be deducted from the Gross Sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised business. Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information.
Table 3
In Table 3 we describe the range of certain Gross Sales metrics reported by the Franchised Locations in 2023 for specific services offered by the Franchised Locations.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, prospective franchisees should conduct an independent investigation to determine the costs and expenses they will incur while operating their franchised business. The FDD indicates that the financial figures provided do not reflect all costs of sales, operating expenses, or other costs that must be deducted from gross revenue to obtain net income or profit.
To aid in this investigation, the FDD suggests that prospective franchisees may contact current or former Kidokinetics franchisees, whose contact information is listed in the document. Speaking with existing franchisees can provide valuable insights into the day-to-day expenses and challenges of running a Kidokinetics franchise.
Kidokinetics also states that written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request. This substantiation could provide additional details and documentation to support the financial performance data presented in the FDD, helping franchisees better understand the underlying assumptions and calculations.