Does Kidokinetics specify the procedures related to the Computer System in writing?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ereby subject to termination as provided herein.
11.3. Computer Systems.
Kidokinetics
- 11.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the management software, required applications and a computer system that complies with Franchisor's standards and specifications, including: (i) an office computer, a tablet computer, a telephone, a fax machine, and a smartphone; (ii) a custom and proprietary point of sale system (the "POS System"), if Franchisor makes such a POS System part of its proprietary operating system in the future; (iii) printers and other peripheral hardware or devices; (iv) archival back-up systems; (v) Internet access mode and speed; and (vi) physical, electronic, and other security systems (collectively, the "Computer System"); and Franchisee shall follow the procedures related thereto that Franchisor specifies in the Franchise Operations Manual or otherwise in writing.
- 11.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems that permit Franchisor to electronically access and retrieve any information stored in Franchisee's management software and other computer systems, including, without limitation, information concerning Gross Sales. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to electronically access and retrieve all information stored on Franchisee's office computer, tablet computer, and smartphone, and in Franchisee's management software and other computer systems. There are no contractual limitations on Franchisor's right to access the information and data on Franchisee's POS System and Computer System. Franchisee shall deliver to Franchisor a separate and distinct full access user name and temporary password, as well as all access codes, static internet protocol ("IP") addresses and other information to facilitate Franchisor's access to the data generated by and stored in Franchisee's computer, tablet or smartphone.
- 11.3.3. Franchisor shall have the right, but not the obligation, to develop or designate: (i) computer software programs Franchisee must use in connection with any component of the Computer System (the "Required Software"), which Franchisee shall install at Franchisee's expense; (ii) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee shall install at Franchisee's expense; (iii) the tangible media upon which Franchisee records data; and (iv) the database file structure of the Computer System. Franchisee shall be responsible for the payment of all fees associated with the Required Software, Computer System and POS System.
- 11.3.4. At Franchisor's request, Franchisee shall purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software. Franchisee agrees to pay all fees associated with the use of Required Software, which may be payable to Franchisor or Franchisor's approved or designated suppliers. Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must install and maintain a computer system that adheres to Kidokinetics's standards. This system includes various components such as an office computer, tablet, phone, fax, and potentially a point-of-sale (POS) system, along with necessary hardware, backup systems, internet access, and security measures. Kidokinetics specifies that franchisees must follow the procedures related to the Computer System as detailed in the Franchise Operations Manual or in other written communications from the franchisor.
Kidokinetics may also require franchisees to install systems that allow Kidokinetics to electronically access and retrieve information, including gross sales data, from the franchisee's management software and computer systems. Franchisees must provide Kidokinetics with the necessary access credentials, including usernames, passwords, IP addresses, and access codes, to facilitate this access. There are no contractual limitations on Kidokinetics's right to access this data.
Furthermore, Kidokinetics requires franchisees to participate in any system-wide computer network, intranet, or extranet system that Kidokinetics implements. Franchisees may be required to use these systems for various purposes, including submitting reports, accessing the Franchise Operations Manual, downloading advertising materials, communicating with Kidokinetics and other franchisees, and completing training. Franchisees must use these systems in compliance with the standards and restrictions outlined in the Franchise Operations Manual, including those related to data encryption and prohibitions against transmitting libelous or defamatory statements.
In practical terms, this means a prospective Kidokinetics franchisee should be prepared to invest in and maintain a comprehensive computer system that meets Kidokinetics's specifications. They must also be willing to share access to their data with Kidokinetics and adhere to the standards and procedures outlined in the Franchise Operations Manual and other written directives. Failure to comply with these requirements could potentially lead to breaches of the franchise agreement.