When is the Software License Fee due for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
version may include an upgrade to a version requiring an additional fee after the effective date of this Agreement.
B. FEES
- (a) Initial KIDOLINK Software License Fee. Franchisee must pay to Franchisor $3,000 for Franchisee's first Franchised Business and $1,000 for Franchisee's second or greater Franchised Business as a one-time Initial Software License Fee, due on the execution of this Agreement (unless), for the use of the KIDOLINK Software.
- (b) Monthly KIDOLINK Software License Fee. Beginning in the first month Franchisee beings to operate the Franchised Business, Franchisee must pay to Franchisor a continuing Monthly Software License Fee via automatic bank draft for the right to use the KIDOLINK Software. Currently, the continuing Monthly Sof
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, a franchisee must pay a one-time Initial Software License Fee upon the execution of the Franchise Agreement. The amount of this fee depends on whether it is for the franchisee's first Kidokinetics business or a subsequent one. For the first franchised business, the fee is $3,000, while for the second or greater franchised business, the fee is reduced to $1,000. In addition to the initial fee, franchisees must also pay a continuing Monthly Software License Fee, which is currently $475 per month and may be increased by up to 10% annually.
This means that a prospective Kidokinetics franchisee needs to be prepared to pay the Software License Fee at the time of signing the franchise agreement. This fee is in addition to other initial fees and investments required to start the business. The reduced fee for additional locations may incentivize existing franchisees to expand their operations.
It is important for potential franchisees to factor in both the initial and ongoing software license fees when evaluating the overall cost of investing in a Kidokinetics franchise. They should also be aware of the possibility of annual increases in the monthly fee, which could impact their operating expenses. Understanding these costs upfront will help franchisees manage their finances effectively and ensure the long-term profitability of their Kidokinetics business.