In Virginia, does the estimated initial investment for a Kidokinetics franchise exceed the franchisor's stockholders' equity as of December 31, 2023?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Virginia, that provision may not be enforceable.
The following risk factor is added to the Special Risks to Consider About This Franchise page:
Estimated Initial Investment. The f
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, for franchisees in Virginia, the estimated initial investment does indeed exceed the franchisor's stockholders' equity as of December 31, 2023. The estimated initial investment for a Kidokinetics franchise ranges from $110,500 to $144,700. Kidokinetics' stockholders' equity as of December 31, 2023, was ($1,596,773).
This means that a new Kidokinetics franchisee in Virginia should be aware that their initial investment will be a significant amount relative to the company's net worth. While not necessarily a negative factor, it is something to consider when evaluating the financial stability of the franchisor.
Prospective franchisees should conduct thorough due diligence, including consulting with financial advisors, to fully understand the implications of this information and assess the overall financial health of Kidokinetics.