Who is responsible for the payment of all fees associated with the Required Software, Computer System, and POS System for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay all fees and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform, web page design, and fees related to exposure on Franchisor's website.
- 11.3.1.
Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2.
Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales.
Franchisee must pay Franchisor a "Software License Fee" of $3,000 for use of Franchisor's proprietary software when Franchisee signs this Agreement.
If this Agreement is for an additional Kidokinetics Business, Franchisee shall pay Franchisor a reduced Software License Fee of $1,000 when Franchisee signs this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the franchisee is responsible for covering all expenses related to technology, software, computer systems, and the POS system. Specifically, the franchisee must pay for the costs of computer hardware and software, internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform, web page design, and fees related to exposure on Kidokinetics' website.
Kidokinetics franchisees are required to install and maintain management software, required applications, and a computer system that adheres to Kidokinetics' standards and specifications. This includes items such as an office computer, a tablet computer, a telephone, a fax machine, and a smartphone. If Kidokinetics implements a custom and proprietary point of sale system (POS System) in the future, the franchisee is responsible for it as well. The franchisee also covers the costs of printers, peripheral hardware, archival back-up systems, internet access, and security systems.
Furthermore, Kidokinetics may require franchisees to install and maintain systems that allow Kidokinetics to electronically access and retrieve information stored in the franchisee's management software and other computer systems, including gross sales data, at the franchisee's sole expense. The franchisee must also provide Kidokinetics with access codes, usernames, passwords, and IP addresses to facilitate this access. Franchisees also pay a $3,000 software license fee for use of Kidokinetics' proprietary software when signing the agreement, or a reduced fee of $1,000 if the agreement is for an additional Kidokinetics business.