During relocation, how are the weekly Royalty and Brand Development Fund Contributions calculated for a Kidokinetics franchise?

According to Kidokinetics's 2024 Franchise Disclosure Document, during the transition to a new location, the franchisee is still liable for weekly Royalty and Brand Development Fund Contributions. The amount due is equal to the average amount paid by the franchisee during the four calendar quarters immediately preceding the date that operations cease at the original Kidokinetics Business Location. If the franchisee was in business for less than four quarters at the original location, the average is calculated based on the shorter period of operation. The franchisee is also responsible for the annual Technology Fee during the transition.

This means that even while relocating, a Kidokinetics franchisee must continue to pay these fees, which can impact their financial planning during the move. The calculation method provides a consistent and predictable cost based on the franchisee's recent sales history. This ensures that Kidokinetics continues to receive revenue during the transition period, and the franchisee knows what to expect in terms of fees.

It's important to note that this obligation continues at the franchisor's sole and absolute discretion, and the term of the agreement is not abated during the transition. Additionally, the franchisee is responsible for removing any signs or property identifying the original location as part of the Kidokinetics system, at their own cost and expense. The address of the new Kidokinetics Business Location will be reflected in Schedule 1 of the Franchise Agreement.