Does Kidokinetics require approval of advertising materials used by a regional advertising cooperative?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provisions will apply to each Cooperative:
- 12.3.1. Each Cooperative will be organized and governed in a form and manner, and will commence operation on a date, approved in advance by Franchisor;
- 12.3.2. Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to Franchisor's approval, standardized advertising materials for use by the members in local advertising;
- 12.3.3. No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without Franchisor's prior approval. All such plans and materials must be submitted to Franchisor for prior review and approval;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a regional advertising and promotional cooperative is established, franchisees must participate in it. The Kidokinetics franchisor retains significant control over these cooperatives.
Specifically, the FDD states that each cooperative must be organized and governed in a manner approved by Kidokinetics. The primary purpose of the cooperative is to administer regional advertising programs and develop standardized advertising materials. However, these materials are subject to the franchisor's approval.
The document explicitly states that no promotional or advertising plans or materials can be used by a Kidokinetics cooperative or provided to its members without the franchisor's prior approval. All plans and materials must be submitted to Kidokinetics for review and approval before use. This ensures that all advertising aligns with the brand's standards and image.