factual

Can Kidokinetics use the Brand Development Fund for collecting and accounting for Brand Development Fund Contributions?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

We have complete discretion on how the Brand Development Fund will be utilized. We may use the Brand Development Fund for local, regional, or national marketing, or any expenditure that we, in our sole discretion, deem necessary or appropriate to promote or improve the System or the Kidokinetics brand. For example, we may use the Brand Development Fund for: (i) developing, maintaining, administering, directing, preparing or reviewing advertising and marketing materials, promotions and programs, including social media management; (ii) public awareness of any of the Marks; (iii) public and consumer relations and publicity; (iv) brand development; (v) research and development of technology, products and services; (vi) website development (including social media) and search engine optimization; (vii) development and implementation of quality control programs; (viii) conducting market research; (ix) changes and improvements to the System; (x) the fees and expenses of any advertising agency we engage to assist in producing or conducting advertising or marketing efforts; (xi) collecting and accounting for Brand Development Fund Contributions; (xii) preparing and distributing financial accountings of the Brand Development Fund; (xiii) conducting quality assurance programs and other reputation management functions; and (xiv) our and our affiliates' expenses associated with direct or indirect labor, administrative, overhead, or other expenses incurred in relation to any of these activities. We may use national and/or regional advertising agencies as the source for our advertising materials, or we may prepare them in-house.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics has complete discretion on how the Brand Development Fund is utilized. The Brand Development Fund can be used for local, regional, or national marketing, or any expenditure that Kidokinetics deems necessary or appropriate to promote or improve the Kidokinetics system or brand.

Specifically, Kidokinetics may use the Brand Development Fund for collecting and accounting for Brand Development Fund Contributions. They can also use the fund for preparing and distributing financial accountings of the Brand Development Fund.

This means that Kidokinetics franchisees contribute 2% of their weekly gross sales to the Brand Development Fund, and Kidokinetics has the right to manage how these funds are collected, accounted for, and spent to benefit the Kidokinetics brand as a whole. While franchisees contribute to this fund, Kidokinetics does not guarantee that advertising expenditures from the Brand Development Fund will directly benefit any franchisee.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.