Under what conditions is a Kidokinetics franchisee exempt from the monthly Technology Fee?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee is not charged an additional technology fee if they meet specific conditions. This exemption applies to a single franchisee who operates up to four Kidokinetics outlets. To qualify, these outlets must be run by the same legal entity and have adjacent territories.

This policy benefits franchisees who expand their Kidokinetics business within a limited geographic area under a single business structure. By consolidating operations, these franchisees can avoid incurring multiple technology fees, which would otherwise apply to each individual outlet. The technology fee covers access to Kidokinetics' workspace on Slack, up to four email addresses, and up to two seats on Monday.com, which is the company's workflow management and customer relationship management tool.

For prospective franchisees, this means that if they plan to operate multiple Kidokinetics locations, structuring their business to meet these conditions can lead to cost savings. However, it's important to note that the exemption is contingent on maintaining adjacent territories and operating under the same legal entity. Franchisees should carefully consider their expansion strategy and business structure to take advantage of this fee exemption.