What was the total expenditure on internal-use software for Kidokinetics in the financial year ending before the date of the FDD?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
3, 2022, and 2021:
| Franchise system development | $ | 108,370 | $ | 108,370 | $ | 108,370 |
|---|---|---|---|---|---|---|
| Internal-use software | 68,200 | 68,200 | 39,200 | |||
| Website | 8,000 184,570 | 8,000 184,570 | 8,000 155,570 | |||
| Less: accumulated amortization | (159,463) | (134,017) | (112,016) | |||
| $ | 25,107 | $ | 50 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the expenditure on internal-use software for the fiscal year ending December 31, 2023, was $68,200. The FDD also provides figures for the fiscal years ending December 31, 2022, and December 31, 2021, which were $68,200 and $39,200, respectively.
This information is relevant for prospective franchisees as it provides insight into Kidokinetics's investment in its internal software systems. These systems are likely used to manage various aspects of the franchise operations, such as customer relationship management, scheduling, or financial tracking. Understanding the level of investment in these systems can help franchisees assess the technological support they can expect from the franchisor.
It's important to note that this figure represents the initial expenditure on the software. The financial statements also include accumulated amortization, which reflects the depreciation of the software's value over time. The net value of the internal-use software, after accounting for accumulated amortization, is included in the intangible assets on the balance sheet. Franchisees should consider both the initial expenditure and the ongoing amortization when evaluating the long-term value of the software.
Prospective franchisees may want to inquire about the specific software systems used by Kidokinetics, the functionality they provide, and any ongoing costs associated with their use, such as maintenance fees or upgrade expenses. This will help them understand the full cost and benefit of the internal-use software and how it contributes to the overall efficiency and profitability of the franchise.