Will Kidokinetics provide an unaudited financial accounting of the operations of the Brand Development Fund annually?

According to Kidokinetics's 2024 Franchise Disclosure Document, an unaudited financial accounting of the Brand Development Fund's operations will be prepared annually. However, this accounting is only provided to franchisees upon written request. This means that Kidokinetics franchisees will not automatically receive this financial information but must actively request it from the company each year.

It's important to note that the Brand Development Fund is not a trust, and Kidokinetics has no fiduciary obligations to franchisees regarding its administration. This gives Kidokinetics significant discretion in how the fund is managed and spent. The expenditures from the Brand Development Fund in any geographic area may not be proportionate or equivalent to the contributions made by franchisees operating in that area, meaning some franchisees may not directly benefit from the fund in proportion to their contributions.

Kidokinetics also retains the right to change, merge, re-form, or dissolve the Brand Development Fund at its discretion. While the company states that the fund will not be used for advertising primarily aimed at selling franchises, they reserve the right to include a notation indicating "franchises available" in any advertisement or website. This provides Kidokinetics with considerable flexibility in managing the Brand Development Fund and its usage, with limited guarantees of direct proportional benefit to individual franchisees.