Will Kidokinetics reimburse franchisees for expenses incurred when changing signage due to a modified or discontinued Mark?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
If it becomes advisable at any time, in our sole discretion, for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trademarks or service marks, you must comply with our directions within 30 days after receiving notice. We will not reimburse you for
your direct expenses of changing signage, for any loss of revenue or other indirect expenses due to any modified or discontinued Mark, or for your expenses of promoting a modified or substituted trademark or service mark.
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics will not reimburse franchisees for expenses incurred when changing signage due to a modified or discontinued mark. If Kidokinetics decides to modify or discontinue using any mark, franchisees must comply with their directions within 30 days of receiving notice.
This means that if Kidokinetics decides to change its branding or trademarks, franchisees are responsible for covering the costs of updating their signage and other materials to reflect the new branding. This includes direct expenses of changing signage, any loss of revenue, other indirect expenses due to any modified or discontinued mark, and expenses of promoting a modified or substituted trademark or service mark.
This lack of reimbursement could pose a financial risk for franchisees, especially if a re-branding occurs frequently or requires significant changes to signage and marketing materials. It is important for prospective franchisees to factor in these potential costs when evaluating the Kidokinetics franchise opportunity. This is not uncommon in the franchise industry, as franchisors often require franchisees to bear the costs of adapting to brand changes, but the specific terms can vary widely.