Under what condition can Kidokinetics establish minimum and maximum resale prices?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Reserve the right to establish minimum and maximum resale prices for use with multiarea marketing programs and special price promotions as allowed by law.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 39–40)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics reserves the right to establish minimum and maximum resale prices under specific conditions. This authority is applicable for use with multi-area marketing programs and special price promotions, but must be in accordance with the law.
This means that while Kidokinetics can set price ranges for franchisees, it is limited to specific marketing and promotional contexts. This is likely intended to ensure consistent pricing across broader marketing campaigns and to facilitate special offers. However, these pricing decisions must comply with all applicable legal standards, which may vary by jurisdiction.
For a prospective franchisee, this implies that while they generally have autonomy over their pricing, Kidokinetics can intervene in certain situations to standardize pricing for marketing purposes. Franchisees should ensure they understand the legal framework governing price setting in their area to ensure compliance. It would be prudent for a potential franchisee to discuss with Kidokinetics the specific types of marketing programs and promotions where these price controls might be applied, and how Kidokinetics ensures compliance with relevant laws.