Does Kidokinetics warrant that its software will meet a franchisee's requirements?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Proprietary Software
may conduct, among other things, scheduling, accounting, inventory, and related activities. Franchisee must obtain the computer hardware necessary to implement the Proprietary Software into the Kidokinetics Business, and comply with all specifications and standards prescribed by Franchisor regarding the Proprietary Software as provided in the Franchise Operations Manual. This Proprietary Software will be Franchisor's proprietary product, and the information collected therefrom will be deemed Franchisor's confidential information. Franchisee agrees to sign Franchisor's then-current form of software license agreement for any Proprietary Software Franchisor may now or in the future create, pay any license fees associated with use of Proprietary Software, and upgrade the Proprietary Software as Franchisor designates.
- 11.3.6.
Franchisee is required to participate in any System-wide computer network, intranet system, or extranet system that Franchisor implements and may be required by Franchisor to use such computer network, intranet system, or extranet system to, among other things: (i) submit Franchisee's reports due under this Agreement to Franchisor online; (ii) view and print portions of the Franchise Operations Manual, including any updates or modifications thereto; (iii) download approved local advertising materials; (iv) communicate with Franchisor and other System franchisees; and (v) to complete any initial or ongoing training.
Franchisee agrees to use the facilities of any such computer network, intranet system or extranet system in strict compliance with the standards, protocols, and restrictions that Franchisor included in the Franchise Operations Manual, including those related to the encryption of confidential information and prohibitions against the transmission of libelous, derogatory or defamatory statements.
- 11.3.7.
Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time.
Franchisee shall maintain an electronic mail account with an Internet service provider acceptable to Franchisor.
Franchisee shall read all electronic mail related to the Kidokinetics Business on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor.
Franchisee shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, there is no explicit warranty provided by Kidokinetics that its proprietary software will meet a franchisee's specific requirements. However, the FDD does outline the franchisee's obligations regarding software and technology. Franchisees are required to implement computer systems, including software and hardware, as mandated by Kidokinetics. They must also obtain the necessary computer hardware to implement the proprietary software and comply with all specifications and standards prescribed by Kidokinetics in the Franchise Operations Manual.
The Kidokinetics system includes KIDOLINK business management software, which assists with managing client leads, sales records, inventory control, marketing, administration, and customer service. Franchisees may also be required to purchase and use customized software developed by Kidokinetics. Franchisees are obligated to sign a software license agreement and pay associated license fees, as well as upgrade the software as directed by Kidokinetics.
Franchisees must participate in any system-wide computer network implemented by Kidokinetics and use it for submitting reports, accessing the Franchise Operations Manual, downloading advertising materials, communicating with Kidokinetics and other franchisees, and completing training. Franchisees are responsible for maintaining adequate hardware and software to access the internet at the required speed and must maintain an electronic mail account acceptable to Kidokinetics, reading all emails daily. Additionally, franchisees are responsible for all technology-related fees, including hardware, software, internet access, license fees, and website-related costs.
Given the franchisee's obligation to use and maintain the software as directed by Kidokinetics, and the absence of an explicit warranty, prospective franchisees should engage in thorough due diligence. They should discuss the software's capabilities, limitations, and any available support with existing franchisees and Kidokinetics representatives. Understanding the software's functionality and the level of support provided will be crucial in determining whether it will meet their specific business needs.