What technologies are covered by the Kidokinetics Technology Fee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ER FEES
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | The greater of 8% of Gross Sales (2) or the "Minimum Royalty" (3) | Due on Wednesday of\neach week for percentage-based Royalty; Monthly for the Minimum Royalty | The "Royalty" is based on "Gross Sales" during the previous week. Your Royalty is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. See Note 3 for a breakout of the Minimum Royalty by timeframe of operation. |
| Brand Development | 2% of Gross Sales | Weekly | You must pay us a brand development fund contribution of 2% of Gross Sales at the same time as the Royalty. We may use the brand development fund for any purpose we determine. |
| Fund Contribution | |||
| Technology Fee | The then-current fee (currently $475 per month with an additional fee of $6 per month if you request additional email addresses) | Monthly | This fee covers certain technologies used in the operation of your Kidokinetics Business and includes up to four e-mail addresses, our KIDOLINK software, access to our Kidokinetics workspace on Slack, and up to two seats on Monday.com, our workflow management and customer relationship management tool. We may charge an additional fee for more than four e-mail addresses (currently, $6 per month per email). This fee may include fees paid to third-party vendors and it may be adjusted to reflect their price increases. This fee will cover up to four Kidokinetics Businesses so long as they are operated by the same legal entity and have adjacent territories. You will also be responsible for any increase in fees that result from any upgrades, modifications or additional services or software. |
| Local Advertising | The greater of $500 per month, or 2% of Gross Sales per month on a rolling 12- month average | Monthly | You must spend this amount on local advertising and marketing purposes. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Technology Fee covers specific technologies used in the operation of the Kidokinetics business. This fee is currently $475 per month. The technology covered by this fee includes up to four email addresses, KIDOLINK software, access to the Kidokinetics workspace on Slack, and up to two seats on Monday.com, which is their workflow management and customer relationship management tool.
If a franchisee requires more than the four included email addresses, there is an additional fee of $6 per month for each additional email address. The Technology Fee may include fees paid to third-party vendors, and Kidokinetics may adjust the fee to reflect any price increases from these vendors.
Notably, the Technology Fee covers up to four Kidokinetics businesses, provided they are operated by the same legal entity and have adjacent territories. However, franchisees are responsible for any fee increases resulting from upgrades, modifications, or additional services or software they choose to implement.