What is the standard Software License Fee 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 for the KIDOLINK software. For the first franchised business, this fee is $3,000, due upon the execution of the Franchise Agreement. However, if the franchisee is opening a second or subsequent Kidokinetics location, the software license fee is reduced to $1,000. This initial fee grants the franchisee a license to use the KIDOLINK software during the term of the Franchise Agreement.
In addition to the one-time initial fee, the franchisee must also pay a continuing monthly software license fee for the right to use the KIDOLINK software. As of the date of the 2024 FDD, this monthly fee is $475, payable via automatic bank draft. Kidokinetics retains the right to increase this monthly fee by up to 10% in any calendar year. This recurring fee is separate from the initial software license fee and represents an ongoing cost of utilizing the software.
The KIDOLINK software is intended for the franchisee's internal use in operating the franchised business. It is designed to assist with scheduling, accounting, inventory management, and related activities. The franchisee is responsible for obtaining the necessary computer hardware to implement the software and must comply with all specifications and standards prescribed by Kidokinetics. The license to use the KIDOLINK software is personal, limited, non-assignable, non-transferable, and non-exclusive.