Under what conditions might Kidokinetics act as an intermediary for recurring fees related to customized software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
B. Recurring Fees. If under the terms of use for any Customized Software Franchisee is required to pay to any third party a recurring fee, whether as a recurring license fee, training and support fee, or otherwise, Franchisor may, in its discretion, after notifying Franchisee in writing, elect to act as intermediary for payment purposes only, without any liability to Franchisor whatsoever, and to pay such recurring fee from Franchisee's payment of the initial and monthly Proprietary Software Fee, as defined in the Franchise Agreement and in Sections 4.A and 4.B below.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics may elect to act as an intermediary for recurring fees related to customized software under specific conditions. If a franchisee is required to pay a third party a recurring fee for customized software, whether it's a license fee, training and support fee, or any other type of recurring charge, Kidokinetics has the option to step in.
Specifically, Kidokinetics must provide written notification to the franchisee before electing to act as an intermediary. If Kidokinetics chooses to act as an intermediary, it will handle the payment of these recurring fees to the third party on behalf of the franchisee. Kidokinetics will then pay such recurring fee from Franchisee's payment of the initial and monthly Proprietary Software Fee.
It is important to note that if Kidokinetics decides to act as an intermediary, it does so for payment purposes only and assumes no liability in this role. This arrangement is contingent on the terms of use for the customized software that require the franchisee to pay recurring fees to a third party. The franchisee is still responsible for ensuring that all license and user agreements are adhered to, regardless of whether Kidokinetics acts as the payment intermediary.