What is the Software License Fee for each additional Kidokinetics Business if a Multi-Franchise is purchased?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
e Fee
You must pay us a software licensing fee ("Software License Fee") for our proprietary KIDOLINK software for each Kidokinetics Business you operate. You will pay us a Software License Fee of $3,000 when you sign your first Franchise Agreement for our proprietary business management software. This fee is uniform and non-refundable. You must also sign the "Software License Agreement," the form of which is attached to this Franchise Disclosure Document in Exhibit H, when you sign the Franchise Agreement. If you purchase a Multi-Franchise or additional Kidokinetics Businesses, you will pay us $1,000 for the Software License Fee for each additional Kidokinetics Business you open. The Software License Fee for additional Kidokinetics Business is uniform and non-refundable and is due when you enter into the Franchise Agreement for the additional Kidokinetics Bus
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees who purchase a Multi-Franchise or additional Kidokinetics businesses must pay a Software License Fee for the KIDOLINK software. The initial Software License Fee for the first franchise is $3,000. However, for each additional Kidokinetics Business opened under a Multi-Franchise agreement, the Software License Fee is reduced to $1,000 per business. This fee is uniform and non-refundable. Franchisees must also sign the Software License Agreement, which is included as Exhibit H in the Franchise Disclosure Document.
This reduced fee for additional locations is a potential benefit for franchisees looking to expand their Kidokinetics operations. It lowers the initial investment required for each subsequent location, making multi-unit ownership more financially accessible. However, franchisees should carefully review the Software License Agreement to understand the terms and conditions of using the KIDOLINK software, as this agreement outlines the franchisee's rights and responsibilities regarding the software.
It is important to note that the Software License Fee is separate from other fees associated with opening a Kidokinetics franchise, such as the Initial Franchise Fee and the Initial Marketing Package fee. Franchisees should factor in all these costs when evaluating the financial feasibility of purchasing a Multi-Franchise. Understanding the terms of the Software License Agreement is crucial, as it governs the use of the proprietary software essential for managing the Kidokinetics business.