What specific expenses were excluded from the Dallas Kidokinetics location's operating expenses?

According to Kidokinetics's 2024 Franchise Disclosure Document, the disclosed operating expenses for the Dallas location do not include all operating expenses. Specifically, the FDD notes that the payroll wages of the owners and managers were excluded from the disclosed operating expenses. However, the payroll taxes paid in connection with the payroll of these owners and managers were included. In addition, reimbursements and wireless communication expenses were excluded from the Dallas Kidokinetics location's operating expenses because they included certain personal expenses of the business owner.

It is important to note that the Dallas Kidokinetics location operates in a combined three-territory location in Texas and reports operating results on a combined basis. This means that the financial information provided may not be representative of a single-territory location. The FDD also states that the Dallas Kidokinetics location operates under a prior form of Franchise Agreement with alternative fee structures, paying a reduced Royalty Fee and not paying a Brand Development Fund Contribution or technology fees.

Prospective franchisees should be aware that the financial performance representations in the FDD do not reflect all expenses, such as taxes and amortization, that must be deducted from the Gross Sales figures to obtain net income or profit. Kidokinetics encourages prospective franchisees to conduct an independent investigation of the costs and expenses they will incur in operating their franchised business. Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information.