Under what conditions does the Kidokinetics Technology Fee cover multiple businesses?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ER FEES
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | The greater of 8% of Gross Sales (2) or the "Minimum Royalty" (3) | Due on Wednesday of\neach week for percentage-based Royalty; Monthly for the Minimum Royalty | The "Royalty" is based on "Gross Sales" during the previous week. Your Royalty is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. See Note 3 for a breakout of the Minimum Royalty by timeframe of operation. |
| Brand Development | 2% of Gross Sales | Weekly | You must pay us a brand development fund contribution of 2% of Gross Sales at the same time as the Royalty. We may use the brand development fund for any purpose we determine. |
| Fund Contribution | |||
| Technology Fee | The then-current fee (currently $475 per month with an additional fee of $6 per month if you request additional email addresses) | Monthly | This fee covers certain technologies used in the operation of your Kidokinetics Business and includes up to four e-mail addresses, our KIDOLINK software, access to our Kidokinetics workspace on Slack, and up to two seats on Monday.com, our workflow management and customer relationship management tool. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Technology Fee covers multiple businesses under specific conditions. The standard Technology Fee is currently $475 per month, with an additional $6 per month for each requested email address beyond the initial four. This fee provides access to KIDOLINK software, the Kidokinetics workspace on Slack, and up to two seats on Monday.com.
Specifically, the Technology Fee will cover up to four Kidokinetics businesses if those businesses are operated by the same legal entity and have adjacent territories. This means a franchisee who owns multiple Kidokinetics franchises under a single company structure and whose territories are next to each other will not have to pay the full technology fee for each location.
However, the franchisee is responsible for any fee increases resulting from upgrades, modifications, or additional services or software. This is an important consideration for franchisees planning to expand, as additional technology needs could increase their monthly costs. It is also important to note that the Technology Fee may be adjusted to reflect price increases from third-party vendors, adding another potential cost fluctuation for franchisees to consider.