What technology-related costs is a Kidokinetics franchisee responsible for covering?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay all fees and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform, web page design, and fees related to exposure on Franchisor's website.
Franchisee shall make any and all upgrades to equipment, machinery, tools, including, but not limited to, QuickBooks Pro online or such other management software as Franchisor designates, and computer hardware (including an office computer, a tablet computer, a telephone, a fax machine, and a smartphone), software and applications, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.
Franchisee agrees to pay Franchisor the then-current technology fee in the amount Franchisor designates each month for technology-related services ("Technology Fee"). The Technology Fee includes services for up to four Kidokinetics Businesses if they are operated by the same legal entity and have adjacent territories. You will pay the then-current additional monthly fee any additional email addresses (over and above the four included with your Technology Fee). Franchisee shall pay the Technology Fee via ACH electronic transfer on the date designated by Franchisor. The Technology Fee is not refundable under any circumstances. Franchisor reserves the right to increase the rate and/or payment frequency of the Technology Fee at any time.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees are responsible for various technology-related expenses. These include a monthly Technology Fee designated by Kidokinetics for technology-related services, with the possibility of increased rates or payment frequency at any time. This Technology Fee covers services for up to four Kidokinetics Businesses operated by the same legal entity with adjacent territories; franchisees must pay an additional monthly fee for any email addresses exceeding the four included in the Technology Fee.
Kidokinetics franchisees must also make any and all upgrades to equipment, machinery, and tools, including QuickBooks Pro online or other designated management software, computer hardware (office computer, tablet, phone, fax machine, smartphone), software, applications, and any related technology. Franchisees also bear the costs of computer hardware and software, internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or benchmarking platform, web page design, and fees related to exposure on Kidokinetics' website.
Kidokinetics retains sole discretion and control over its website, including the right to discontinue it. While Kidokinetics will provide franchisees with a dedicated page on the website, franchisees may be required to prepare all or a portion of the page using a template provided by Kidokinetics, subject to Kidokinetics' approval. Franchisees have no ownership or proprietary rights to their page and will lose all rights upon expiration or termination of the Franchise Agreement. These technology-related costs are in addition to other fees and expenses outlined in the Franchise Agreement.