Under what conditions can Kidokinetics adjust fixed dollar amount fees?

According to Kidokinetics's 2024 Franchise Disclosure Document, any fee expressed as a fixed dollar amount is subject to adjustment based on changes to the Consumer Price Index (CPI) in the United States. Kidokinetics may periodically review and increase these fees based on changes to the CPI, but only if the increase to the CPI is more than 5% higher than the corresponding CPI in effect on either the effective date of the Franchise Agreement for initial fee adjustments, or the date Kidokinetics implemented the last fee adjustment for subsequent fee adjustments.

Kidokinetics will notify franchisees of any CPI adjustment at least 60 days before the fee adjustment becomes effective. Furthermore, Kidokinetics will implement no more than one CPI-related fee adjustment during any calendar year. This means that while Kidokinetics can adjust fixed dollar amount fees, they are limited to adjustments based on the CPI, with a minimum threshold for the increase, advance notice, and a limit on the frequency of adjustments.

For a prospective Kidokinetics franchisee, this means that certain fees, like the Technology Fee of $475 per month, could increase over time due to inflation. However, these increases are capped by the CPI and can only occur if the CPI increase is significant (more than 5%). Franchisees will receive advance notice of any such changes, allowing them to plan for the increased expense. This is a fairly standard practice in franchising, as it allows the franchisor to keep pace with inflation without arbitrarily raising fees.