Kid to Kid Franchise

Financing Details

Kid to Kid does not offer direct financing to its franchisees. However, its affiliate, BaseCamp Franchising, LLC, may offer loans for furniture, fixtures, and equipment. These loans do not require a down payment but include a $500 upfront documentation fee. The annual interest rate for these loans ranges from 15% to 20%, compounded monthly, with repayment terms available over 12, 24, or 36 months. Payments are automatically withdrawn from the franchisee's account on the 20th day of each month. For example, a $25,000 loan at 18% interest over 24 months would incur monthly payments of $1,248.10. BaseCamp secures these loans with a security interest in the assets being financed and requires a personal guarantee from the franchisee and their spouse or domestic partner.

Litigation Summary

Kid to Kid's predecessor, Kid to Kid Franchise System, Inc., was involved in one arbitration case filed in August 2014 by a franchisee. The franchisee sought to cancel their agreement and claimed damages, alleging unlawful earnings claims and poor support. In December 2015, the arbitrator found that the franchisee had breached their agreement but also determined that Kid to Kid's predecessor had failed to advise the franchisee to seek legal counsel regarding their lease. As a result, the predecessor was held jointly and severally liable to the franchisee for $186,750 to offset some rent obligations. This award was confirmed by a U.S. District Court in January 2016. Kid to Kid reports no other litigation.

Renewal Conditions

To renew their franchise agreement, Kid to Kid franchisees must submit a written request at least six months before their current term ends. They must demonstrate that they are in good standing, meaning they have not been repeatedly in default and are not currently in default of any agreement with Kid to Kid or its affiliates, and all accounts must be current. Franchisees will need to sign the then-current version of the franchise agreement, which may have different terms and fees. They must also pay a renewal fee equal to 25% of the initial franchise fee, renovate and redecorate their store to meet current brand standards within two months of renewal, sign a general release, and attend a Refresher Training if deemed necessary by Kid to Kid. Additionally, franchisees owning other Kid to Kid or affiliated resale stores must update all their franchise agreements to the most current terms.

Staffing Notes

Kid to Kid franchisees are solely responsible for hiring, training, and managing all store employees (Associates), including making decisions on employment terms, scheduling, benefits, compensation, and termination. Franchisees must ensure Associates are competent in sales, familiar with products, and adhere to prescribed training standards and procedures. Associates must uphold high standards of professionalism, service, and courtesy, and be attired as specified in the Training and Operations Tools. New employees must be registered on the BaseCamp Training Portal to complete required modules. Franchisees must have written agreements with all Associates, partners, and immediate non-minor family members that include confidentiality clauses for proprietary and marketing information, non-competition covenants (as modified for individuals), and provisions for termination upon expiration of the franchise agreement or relationship. Passwords and system access must be deactivated for terminated Associates. For the first six months of operation, an individual franchisee or a 10% owner of a corporate franchisee must directly supervise the business full-time on-site. After this period, or for additional stores, a trained owner or manager must directly manage the business on-site, with Kid to Kid recommending consistent owner presence.