Under what condition may a Kidokinetics franchisee be required to purchase and use customized software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may also, from time to time, whether itself or through its designees develop customized software for Franchisee's use in connection with the Franchised Business ("Customized Software"). Franchisee may, at the discretion of Franchisor, be required to purchase and use the Customized Software. Whether Franchisee is required to, or otherwise elects to, use the Customized Software, Franchisee agrees to abide by the terms of this Agreement with regards to any Customized Software. The KIDOLINK Software and Customized Software will be referred to collectively in this Agreement as the "Proprietary Software."
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee may be required to purchase and use customized software at the discretion of Kidokinetics. Kidokinetics may develop customized software for the franchisee's use in connection with the franchised business. If Kidokinetics chooses, the franchisee must purchase and use this software and adhere to the agreement's terms regarding the customized software.
Kidokinetics also requires franchisees to implement computer systems, including all software and hardware, that Kidokinetics deems necessary. This includes using the KIDOLINK business management software, which assists with managing client data, sales records, inventory control, marketing, administrative tasks, and customer service. Franchisees must use current versions of the KIDOLINK software, which may include upgrades requiring additional fees.
Furthermore, Kidokinetics can require franchisees to upgrade equipment, machinery, tools, and computer hardware and software as Kidokinetics deems necessary. Franchisees must also participate in any system-wide computer network that Kidokinetics implements and may be required to use it for submitting reports, viewing the Franchise Operations Manual, downloading advertising materials, and communicating with Kidokinetics and other franchisees. Franchisees must maintain adequate hardware and software to access the internet at the speed required by Kidokinetics and maintain an electronic mail account acceptable to Kidokinetics, checking it daily for communications from Kidokinetics.
These stipulations highlight the importance of technology in operating a Kidokinetics franchise and the franchisee's obligation to stay current with Kidokinetics's technology standards. The franchisee bears the costs of these technology upgrades and software, which can impact the overall investment and operational expenses. Prospective franchisees should carefully consider these technology-related requirements and costs when evaluating the Kidokinetics franchise opportunity.