Under what conditions may a Kidokinetics franchisee be required to purchase and use Customized Software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- D. 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' 2024 Franchise Disclosure Document, a franchisee may be required to purchase and use Customized Software at the discretion of Kidokinetics. Customized Software refers to software developed by Kidokinetics or its designees for use in connection with the Franchised Business.
This means that Kidokinetics retains the right to mandate the use of specific software tailored for the franchisee's operations. While the FDD mentions KIDOLINK software, which assists with various business management tasks, Kidokinetics can introduce and require franchisees to adopt additional Customized Software.
For a prospective franchisee, this implies a potential ongoing investment in software as Kidokinetics deems necessary. It is important to understand the potential costs associated with purchasing, implementing, and maintaining any required Customized Software. Franchisees should inquire about the types of Customized Software that may be required, their costs, and the reasons for their implementation to better assess the financial implications and operational changes that may arise during the franchise term.