What was the total dollar amount of royalties paid by the sample Kidokinetics franchise location?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
|---|---|---| | Franchise-Related Expenses | | | | Royalties | $57,820 | 8.0% | | Brand Development Fund Contribution | $14,455 | 2.0% | | Technology Fee | $5,700 | 0.8% | | Local Advertising (Difference) | $2,811 | 0.4% | | Total Expenses | $487,014 | 67.38% | | Adjusted Net Operating Income | $235,741 | 32.6% | | Table 2B | | | | Financial Information for the North Carolina Location
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–54)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, one sample franchise location, the North Carolina location, paid $10,060 in royalties during the 2023 reporting period. This royalty payment represented 7.58% of the location's gross sales, which totaled $132,773 for the year.
It's important to note that this North Carolina location operated under a prior form of franchise agreement, which included alternative fee structures. These alternative fee structures included reduced royalty fees, and did not include Brand Development Fund contributions or technology fees, which are required under the current franchise agreement.
Prospective franchisees should consider that the royalty structure may differ from what is presented for the North Carolina location. The current agreement requires a royalty fee of 8% of gross sales, a Brand Development Fund contribution of 2% of gross sales, and a technology fee of $475 per month. These differences in fee structure could significantly impact the overall financial performance of a Kidokinetics franchise.