Can the Kidokinetics Technology Fee be adjusted?
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. |
| Franchise Number | Grace Period in Months Following Grace Period Expiration | |---|---| | Franchise Number | | | 2 | 12 months | | 3 | 24 months | | 4 | 36 months |
| | Timeframe | Minimum Royalty | |---|---|---| | First 12 months (Beginning after the Grace | | $600 per month | | Period Expiration) | | | | Months 13 to 24 | | $800 per month | | Months 25+ | | $1,000 per month |
- Fees. All fees paid to us or our affiliates are uniform and not refundable under any circumstances 1. once paid. Fees paid to vendors or other suppliers may be refundable depending on the vendors and suppliers. We currently require you to pay fees and other amounts due to us or our affiliates via electronic funds transfer ("EFT") or other similar means. You are required to complete the ACH authorization (in the form attached to this Franchise Disclosure Document in Exhibit H). We can require an alternative payment method or payment frequency for any fees or amounts owed to us or our affiliates under the Franchise Agreement.
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 can be adjusted. The current Technology Fee is $475 per month, which includes up to four email addresses, KIDOLINK software, access to the Kidokinetics workspace on Slack, and up to two seats on Monday.com. There is an additional fee of $6 per month for each additional email address requested.
The Technology Fee may be adjusted to reflect price increases from third-party vendors. Additionally, franchisees are responsible for any fee increases resulting from upgrades, modifications, or additional services or software. The Technology Fee covers up to four Kidokinetics businesses if they are operated by the same legal entity and have adjacent territories.
Kidokinetics also reserves the right to adjust any fee expressed as a fixed dollar amount based on changes to the Consumer Price Index (CPI) in the United States. These adjustments can occur if the CPI increase is more than 5% higher than the CPI in effect either on the franchise agreement's effective date or the date of the last fee adjustment. Franchisees will receive at least 60 days' notice before any CPI-related fee adjustment takes effect, and no more than one CPI-related adjustment will be implemented per calendar year.