What rights does Kidokinetics retain regarding internet marketing?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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We reserve the right to require you to provide us with all social media account information related to the Kidokinetics Business and grant us independent access (including administrator rights) to your Kidokinetics Business social media accounts in order to make upgrades, post information, and manage social media accounts as we deem appropriate for the benefit of the System. (Franchise Agreement, Section 12.6).
We retain the sole right to market on the Internet, including the use of websites, domain names, uniform resource locator's, linking, search engines (and search engine optimization techniques), banner ads, meta-tags, marketing, auction sites, e-commerce and co-branding arrangements. You may be requested to provide content for our Internet marketing, and you must follow our intranet and Internet usage rules, policies and requirements. We retain the sole right to use the Marks on the Internet, including on websites, as domain names, directory addresses, search terms and meta-tags, and in connection with linking, marketing, co-branding and other arrangements. We retain the sole right to approve any linking to, or other use of, the Kidokinetics website. (Franchise Agreement, Section 12.6)
Computer System
You are required to purchase a computer system that consists of the following hardware and software: (a) a desktop or laptop that runs Windows 11, a multi-function printer/scanner, a digital camera, a phone, a music box and a flash drive; and (b) Microsoft Office and QuickBooks ("Computer System"). We estimate the cost of purchasing the Computer System will be between $500 and $1,500. You will also pay us a Software License Fee of $3,000 prior to opening for our proprietary KIDOLINK software ($1,000 for additional Kidokinetics Businesses). You will also pay us a monthly Technology Fee for certain technologies used in the operation of your Kidokinetics Business, which includes up to four email addresses, access to our Kidokinetics workspace on Slack, and up to two seats on Monday.com, our workflow management and customer relationship management tool. We do not assess an additional technology fee for a single franchisee operating up to four outlets so long as they are operated by the same legal entity and have adjacent territories.
The Computer System will manage the daily workflow of the Kidokinetics Business, register your participants, market to them, report to us, and perform other functions. You must record all Gross Sales on the Computer System. You must use the Computer System to track all online and offline registrations. You must store all data and information in the Computer System that we designate, and report data and information in the manner we specify. The Computer System will generate reports on the Gross Sales of your Kidokinetics Business. We may access electronic information and data generated from the Computer System at any time.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics retains significant control over internet marketing activities. Kidokinetics maintains the sole right to market on the Internet, including the use of websites, domain names, URLs, linking, search engines and optimization, banner ads, meta-tags, marketing, auction sites, e-commerce, and co-branding arrangements. Franchisees may be asked to provide content for Kidokinetics' internet marketing but must adhere to Kidokinetics' intranet and internet usage rules, policies, and requirements. Kidokinetics also retains the sole right to use its marks on the internet, including on websites, as domain names, directory addresses, search terms, and meta-tags, and in connection with linking, marketing, co-branding, and other arrangements. Kidokinetics retains the sole right to approve any linking to, or other use of, the Kidokinetics website.
Kidokinetics restricts franchisees from establishing a presence on, or marketing, promoting, or advertising their Kidokinetics business using the Internet or other electronic media without prior written approval. Franchisees must not establish or maintain a separate website, splash page, profile, or other presence on the Internet, including social media, without written approval from Kidokinetics. If Kidokinetics grants approval, franchisees must operate the Internet site according to system standards and policies, utilize any templates provided by Kidokinetics, and obtain approval before making social media postings. Franchisees must also remove any social media postings that Kidokinetics determines are inappropriate or detrimental to the goodwill of the system within 24 hours of notice.
Franchisees are required to obtain paid advertising on the Internet (i.e., Google, Yahoo, Bing, and MSN) for their Kidokinetics business directly through third parties and are responsible for any fees charged. These fees may be credited to the Local Marketing Requirement, which is the greater of $500 or 2% of Gross Sales per month on a rolling 12-month average. Kidokinetics also reserves the right to require franchisees to provide all social media account information related to the Kidokinetics business and grant Kidokinetics independent access (including administrator rights) to the franchisee's Kidokinetics business social media accounts to make upgrades, post information, and manage social media accounts as Kidokinetics deems appropriate for the benefit of the System.