What is the 'Reporting Group' comprised of in the Kidokinetics financial performance representation?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The tables below provide information on two Affiliates Locations and sixteen reporting Franchised Locations ("Reporting Group") for calendar year 2023. For the three Franchise Locations in the Reporting Group that have operated for at least 24 months as of December 31, 2023 ("Mature Franchised Locations"), we also include data regarding the costs of goods sold and operating expenses incurred by these Mature Franchise Locations. We exclude the data of the 89 franchised territories that did not operate for all twelve months of 2023. The Affiliate Locations do not pay Royalty Fees, Brand Development Fund Contributions, or technology fees and are not subject to a Local Marketing Requirement, all of which a franchised Kidokinetics Businesses will have to pay. The Kidokinetics Businesses included in this financial performance representation offer similar services and faces a similar degree of competition anticipated for the Kidokinetics Businesses offered under this Franchise Disclosure Document.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the "Reporting Group" used in the financial performance representation for calendar year 2023 includes two affiliate locations and sixteen franchised locations. However, the FDD excludes data from 89 franchised territories that did not operate for the entire twelve months of 2023, as well as two territories opened by another affiliate in 2023 that did not operate for all twelve months of the year.
It is important to note that the affiliate locations within the Reporting Group do not pay royalty fees, brand development fund contributions, or technology fees, and they are not subject to a local marketing requirement, all of which are obligations for franchised Kidokinetics businesses. The financial performance of these affiliate locations may not be representative of what a franchisee can expect due to these differences in fees and requirements.
For three of the franchise locations in the Reporting Group that had been operating for at least 24 months as of December 31, 2023, Kidokinetics also includes data regarding the costs of goods sold and operating expenses. These locations are referred to as "Mature Franchised Locations." The FDD provides additional financial details for these mature locations, offering a more comprehensive view of potential costs and profitability after a longer period of operation.
Table 1 within Item 19 details the gross sales for the franchised locations in the reporting group, broken down by the number of territories operated by each location (one, two, or three territories) and the gross sales for the reporting affiliate locations. This breakdown allows prospective franchisees to see average sales based on the scale of operation. The FDD emphasizes that the Kidokinetics businesses included in this financial performance representation offer similar services and face a similar degree of competition anticipated for new Kidokinetics businesses.