What is the Software License Fee for additional Kidokinetics businesses?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Business.
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). Except as disclosed above, as of the Issuance Date of this Franchise Disclosure Document, neither we, nor our affiliates are approved suppliers of any item, although we may become one in the future. Some of our officers own an equity interest in us, an approved
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee must pay a Software License Fee of $3,000 prior to opening for the proprietary KIDOLINK software. However, for each additional Kidokinetics business, the Software License Fee is reduced to $1,000. This fee is specifically for the KIDOLINK software, which Kidokinetics considers proprietary.
This means that if a franchisee decides to expand and open more Kidokinetics locations, they will benefit from a lower software license fee for each subsequent location. This could be a significant cost saving for franchisees planning to operate multiple units. The fee covers the license to use the KIDOLINK software, which is essential for running the Kidokinetics business.
It is important to note that this fee is in addition to other fees associated with opening a Kidokinetics franchise, such as the initial franchise fee and ongoing royalty fees. Franchisees should factor in this software license fee when budgeting for the costs of opening and operating a Kidokinetics franchise. The FDD also mentions that Kidokinetics may require franchisees to use other technology business solutions, which may involve additional fees to approved suppliers.