Who is responsible for incidental expenses related to initial or subsequent Kidokinetics training?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
limited to the Technology Fee.
6. TRAINING.
6.1. Initial Management Training Program. Franchisee, or if Franchisee is an entity, Franchisee's principals (defined as all holders of an ownership interest, office or directorship in Franchisee and of any entity directly or indirectly controlling Franchisee, and any other person or entity controlling, controlled by or under common control with Franchisee and hereinafter referred to collectively as "Principals") having management responsibility for the Kidokinetics Business and Franchisee's Manager (if different from the Principal) shall attend and complete, to Franchisor's sole and absolute satisfaction, Franchisor's next scheduled initial management training program ("Initial Management Training Program") unless the next scheduled Initial Management Training Program is scheduled within 15 days of the Effective Date of this Agreement in which event Franchisee will attend the next scheduled training program. The Initial Training Program pertains to operation of the Franchised Business. The Initial Management Training Program consists of a course conducted at Franchisor's headquarters, currently in Davie, Florida, or at a location within the vicinity of Franchisor's headquarters. Franchisor reserves the right to designate an alternate location for the Initial Management Training Program. If Franchisee is an entity, it must at all times during the term of this Agreement have a Principal and a Manager who have successfully completed the Initial Management Training Program to Franchisor's sole and complete satisfaction. Franchisee, Franchisee's Principals with management responsibility, and Franchisee's Manager may attend the Initial Management Training Program at no charge prior to opening the Kidokinetics Business ("Initial
- Trainees"). Notwithstanding the foregoing, Franchisee will be required to pay all of the expenses of the Initial Trainees, including, without limitation, costs of travel, lodging, meals and wages.
- 6.2. Modification of the Initial Management Training Program. Franchisor may modify the length, content and manner of conducting the Initial Management Training Program in its discretion from time to time. Franchisor also reserves the right to waive a portion of the training program or alter the training schedule, if in Franchisor's sole discretion, Franchisor determines that Franchisee or Franchisee's Manager has sufficient prior experience or training.
- 6.3. Satisfactory Completion. Franchisor will determine, in Franchisor's sole discretion, whether the Initial Trainees have satisfactorily completed the Initial Management Training Program. If the Initial Management Training Program is not satisfactorily completed by the Initial Trainees, or if Franchisor, in Franchisor's reasonable business judgment based upon the performance of the Initial Trainees, determines that the Initial Management Training Program cannot be satisfactorily completed by any such person, Franchisee will designate a replacement person, who meets the qualifications set forth in this Agreement, to satisfactorily complete such training. Any Manager subsequently designated by Franchisee will also receive and satisfactorily complete such initial training.
- 6.4. Fee for Training. Franchisor reserves the right to charge a reasonable fee for any initial training provided by Franchisor to any additional trainee beyond the first two, and any replacement of an Initial Trainee who does not complete the Initial Management Training Program to Franchisor's sole and complete satisfaction. Franchisor also reserves the right to charge a reasonable fee for any initial training provided by Franchisor to any replacement or successor Manager, if Franchisee is not approved by Franchisor to provide such training. Franchisor's current training tuition fee is $500 per person per day, but may be adjusted at Franchisor's sole discretion. Franchisee further will be responsible for any and all incidental expenses incurred by Franchisee or Franchisee's personnel in connection with initial or subsequent training, including, without limitation, costs of travel, lodging, meals and wages.
- 6.5. Additional Training. Franchisor may offer mandatory and/or optional additional training programs from time to time.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is responsible for all incidental expenses incurred during both initial and additional training programs. Specifically, the franchisee must cover costs related to travel, lodging, meals, and wages for themselves, their principals, and their manager. This applies to the initial management training program, any required refresher training, and attendance at the Kidokinetics national business meeting or annual convention.
For the initial management training program, while the training itself is provided at no charge to the franchisee, principals, and manager, the franchisee is explicitly responsible for covering all associated expenses. This includes travel, lodging, meals, and wages for all attendees. This financial responsibility ensures that the franchisee bears the full cost of sending their personnel to the training location, which is typically at Kidokinetics's headquarters in Davie, Florida, or a nearby location.
For additional training or attendance at the national business meeting or annual convention, the franchisee is also responsible for all incidental expenses. Furthermore, Kidokinetics reserves the right to charge a fee for additional training, currently set at $500 per person per day. The franchisee is also required to pay a registration fee for the national business meeting or annual convention, regardless of whether they actually attend. Failure to attend mandatory additional training or the national business meeting can result in a default of the Franchise Agreement.
In the event that Kidokinetics provides interim management support due to the franchisee's manager not being properly trained or certified, the franchisee will be responsible for covering all costs of travel, lodging, meals, and other expenses reasonably incurred by Kidokinetics. This is in addition to an interim management fee of 10% of Gross Sales during the interim management period plus the subsequent three weeks, as well as all other regularly occurring fees.