What is the transfer fee for each subsequent Kidokinetics business that a franchisee transfers after the first?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
on the circumstances of the transfer or otherwise.
- 15.4. Transfer Fee. As a condition to any Transfer, Franchisee shall pay Franchisor a transfer fee equal to $10,000 for the first Kidokinetics business that Franchisee transfers and $5,000 for each subsequent or additional Kidokinetics Business that Franchisee Transfers (the "Transfer Fee"). If Franchisor agrees to extend the transferee's term to ten (10) years under a new franchise agreement, the Transfer Fee will be replaced by the Franchisor's then-current initi
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, a franchisee who transfers their Kidokinetics business will be charged a transfer fee. The transfer fee is $10,000 for the first Kidokinetics business that is transferred.
For each subsequent Kidokinetics business that a franchisee transfers, the transfer fee is reduced to $5,000. This means that if a franchisee owns multiple Kidokinetics locations and decides to sell them, they will pay a lower transfer fee for each location after the first one.
However, there is an exception to this fee structure. If Kidokinetics agrees to extend the transferee's term to ten years under a new franchise agreement, the transfer fee will be replaced by Kidokinetics' then-current initial franchise fee under the new franchise agreement. This means that the franchisee may have to pay the full initial franchise fee instead of the transfer fee if the term is extended.
It is important for prospective franchisees to understand these transfer fees, as they can significantly impact the profitability of selling a Kidokinetics franchise. Franchisees should also consider the conditions under which the transfer fee may be waived or replaced by the initial franchise fee.