Will Kidokinetics provide an annual accounting for the Brand Development Fund to franchisees upon request?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The Brand Development Fund is not audited. Upon your written request, we will make available an annual accounting for the Brand Development Fund that shows how the Brand Development Fund proceeds have been spent for the previous year. During our fiscal year ended December 31, 2023, we spent 100% of the Brand Development Fund Contributions on administration.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, upon a franchisee's written request, Kidokinetics will provide an annual accounting for the Brand Development Fund. This accounting will detail how the Brand Development Fund's proceeds were spent in the previous year.
For a prospective franchisee, this means that while Kidokinetics has complete discretion on how the Brand Development Fund is utilized, they are accountable for providing information on how the funds are spent. This allows franchisees to stay informed about the allocation of their contributions to the fund. For the fiscal year ending December 31, 2023, 100% of the Brand Development Fund Contributions were spent on administration.
It is important to note that the Brand Development Fund is not audited, so the accounting provided will not be subject to external verification. While Kidokinetics is not required to segregate the Brand Development Fund from its other monies, they do commit to separately accounting for all Brand Development Fund Contributions that they administer.