Will Kidokinetics reimburse franchisees for loss of revenue due to a modified or discontinued Mark?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
by us to you.
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 tra
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics will not provide reimbursement to franchisees if they are required to modify or discontinue the use of a mark. Specifically, Kidokinetics will not reimburse franchisees for the direct expenses of changing signage, any loss of revenue, other indirect expenses, or the costs of promoting a modified or substituted trademark or service mark.
This means that if Kidokinetics decides to change its branding or if a legal issue forces a change, franchisees will bear the financial burden of updating their business's signage and promotional materials. Furthermore, Kidokinetics franchisees will not be compensated for any potential loss of income during the transition to a new mark.
This lack of reimbursement is a notable risk for prospective Kidokinetics franchisees. In the event of a required change to the Kidokinetics marks, franchisees should be prepared to cover these costs out of pocket, which could impact their profitability. It is common in some franchise systems for the franchisor to offer some financial assistance or marketing support during rebranding initiatives, so the Kidokinetics policy is less favorable to franchisees in this regard.