Under what conditions will Kidokinetics defer payment of the initial franchise fee?

According to Kidokinetics's 2024 Franchise Disclosure Document, the payment of initial fees can be deferred under specific conditions. For all franchisees, Kidokinetics will defer the initial fees and payments until it has completed its pre-opening obligations as outlined in the franchise agreement. This means a new franchisee won't have to pay the initial franchise fee until Kidokinetics has fulfilled its responsibilities in getting the franchise ready to open.

Additionally, if a franchisee purchases multiple Kidokinetics franchises, all initial payments will be deferred until the first of those franchises actually opens. This provides a financial benefit to franchisees looking to expand quickly, as they won't have to pay the initial fees for all their franchises upfront. Instead, they can stagger the payments as each location becomes operational.

It is important to note that these deferral terms may be influenced by state-specific regulations. For example, the Virginia State Corporation Commission requires Kidokinetics to defer payment of the initial franchise fee until the franchisor completes its pre-opening obligations. Similarly, in Illinois, the Attorney General's Office requires deferral of all initial fees, including the Franchise Fee, until all of Kidokinetics's initial obligations are complete and the Franchise is open for business. Therefore, prospective franchisees should carefully review the state addenda in the FDD to understand how local laws may affect fee deferral.