Before signing the Franchise Agreement, what must a Kidokinetics franchisee and franchisor agree on?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You and we will agree on your territory before you sign the Franchise Agreement. You will not receive an exclusive territory ("Territory"). You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Except as described below, we will not establish or franchise others to establish another Kidokinetics Business within your designated Territory during the term of the Franchise Agreement. Your Territory for each Kidokinetics Business will contain a minimum population of approximately 250,000 persons. You may offer the Kidokinetics® sports fitness programs to all schools, parks, community centers, summer camps, hotels, gyms, health centers and similar establishments located within your Territory.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, before signing the Franchise Agreement, the franchisee and Kidokinetics must agree on the territory. The franchisee will not receive an exclusive territory. The territory for each Kidokinetics business will contain a minimum population of approximately 250,000 persons.
This agreement on territory is a crucial step for prospective Kidokinetics franchisees. While the franchisee won't receive an exclusive territory, meaning they may face competition from other franchisees or outlets owned by Kidokinetics, the agreement ensures a defined area of operation. The minimum population requirement of 250,000 people aims to provide a sufficient customer base for the business.
It's important to note that the franchisee can offer Kidokinetics programs to various establishments within their territory, such as schools, parks, and community centers. However, these establishments may charge fees for access to their premises, potentially impacting the franchisee's revenue. The FDD estimates an approximate average of 5% of annual revenue could be used to pay for these fees. Franchisees should factor in these potential costs when evaluating the financial viability of their Kidokinetics business.