Does Kidokinetics warrant that its software will be free from technical mistakes?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
s Agreement.
- 5.3. Software License Fee. Franchisee must pay Franchisor a "Software License Fee" of $3,000 for use of Franchisor's proprietary software when Franchisee signs this Agreement. This fee is uniform and non-refundable. Franchisee must also sign the "Software License Agreement," the form of which is attached to Franchisor's Franchise Disclosure Document in Exhibit H, when Franchisee signs the Franchise Agreement. If this Agreement is for an additional Kidokinetics Business, Franchisee shall pay Franchisor a reduced Software License Fe
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
The 2024 Kidokinetics Franchise Disclosure Document does not explicitly state any warranty regarding the proprietary software being free from technical mistakes. However, it does mention several aspects related to the software and its use.
Kidokinetics requires franchisees to obtain the necessary computer hardware to implement the proprietary software and comply with all specifications and standards prescribed by Kidokinetics. The franchisee must also sign Kidokinetics's current software license agreement, pay any associated license fees, and upgrade the software as designated by Kidokinetics. The franchisee is also required to participate in any system-wide computer network, intranet system, or extranet system that Kidokinetics implements.
Franchisees must pay a $3,000 Software License Fee (or a reduced fee of $1,000 for additional Kidokinetics businesses) for the use of Kidokinetics's proprietary software. They are also required to submit Gross Sales Reports via electronic transfer of data using the management software Kidokinetics requires.
Since the FDD does not provide an explicit warranty, a prospective franchisee should ask Kidokinetics about the reliability of the software, what support is offered, and what recourse is available if the software malfunctions and causes business disruption or financial loss.