Does the Kidokinetics Technology Fee cover fees paid to third-party vendors?
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. |
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 does cover fees paid to third-party vendors. The then-current Technology Fee is $475 per month, with an additional $6 per month if the franchisee requests additional email addresses.
The Technology Fee covers certain technologies used in the operation of the Kidokinetics business, including 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. The document states that the Technology Fee may include fees paid to third-party vendors and may be adjusted to reflect their price increases.
It is important to note that while the Technology Fee covers up to four Kidokinetics businesses if operated by the same legal entity and within adjacent territories, the franchisee will be responsible for any increase in fees resulting from upgrades, modifications, or additional services or software. This means that while the base fee covers certain third-party vendor costs, franchisees should be prepared for potential increases or additional costs based on their specific technology needs and usage.