Is the Software License Fee for the KIDOLINK software refundable for a Kidokinetics franchise?
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, the Software License Fee for the KIDOLINK software is non-refundable. The FDD states that franchisees must pay a software licensing fee for the proprietary KIDOLINK software for each Kidokinetics business they operate. The fee is $3,000 when signing the first Franchise Agreement. Franchisees who purchase a Multi-Franchise or additional Kidokinetics Businesses will pay $1,000 for the Software License Fee for each additional Kidokinetics Business they open.
This non-refundable fee means that once a franchisee pays the Software License Fee, they will not receive a refund under any circumstances, even if they terminate the franchise agreement or do not use the software. This is a standard practice in franchising, as the franchisor incurs costs in developing, maintaining, and licensing the software. The franchisee also must sign the Software License Agreement, the form of which is attached to the Franchise Disclosure Document in Exhibit H, when they sign the Franchise Agreement.
Prospective franchisees should carefully consider the implications of this non-refundable fee before investing in a Kidokinetics franchise. They should evaluate the software's features and benefits to determine if it is a valuable tool for managing their business. It would be prudent to review Exhibit H, the Software License Agreement, to fully understand the terms and conditions associated with the software license.