What banking information must a Kidokinetics franchisee provide before opening their business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.8. Method of Payment. Franchisee will, together with the submission of the Gross Sales Report, pay to Franchisor each Wednesday, via an electronic funds transfer program ("EFT Program") the Royalty and the Brand Development Fund, as defined and more particularly described in Article 13, then due. Franchisee must deposit all revenues from the operation of Franchisee's Kidokinetics Business into one bank account within three days of receipt, including cash, checks, and credit card receipts. Before opening Franchisee's Kidokinetics Business, Franchisee must provide Franchisor with Franchisee's bank name, address and account number, a voided check from the bank account, and sign and give to Franchisor and Franchisee's bank, all documents, including Attachment "G" to this Agreement, necessary to effectuate the EFT Program and Franchisor's ability to withdraw funds from such bank account via electronic funds transfer. Franchisee will immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in account numbers. Franchisor reserves the right to require Franchisee to pay any fees due under this Agreement by such other means as Franchisor may specify from time to time. Franchisee's failure to allow electronic funds transfers on an ongoing basis is a breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, before opening their Kidokinetics business, franchisees must provide specific banking information to facilitate electronic funds transfers. This includes the franchisee's bank name, address, and account number. Additionally, the franchisee must provide a voided check from the bank account.
Kidokinetics requires franchisees to sign and provide all necessary documents, including Attachment "G" of the Franchise Agreement, to both Kidokinetics and the franchisee's bank. These documents enable Kidokinetics to withdraw funds from the franchisee's bank account via electronic funds transfer. This EFT Program is the method by which franchisees pay royalties and Brand Development Fund contributions to Kidokinetics each Wednesday.
Franchisees are obligated to deposit all revenues from their Kidokinetics business into a single bank account within three days of receipt. Furthermore, franchisees must immediately notify Kidokinetics of any changes in their banking relationship, including changes in account numbers. Failure to allow electronic funds transfers on an ongoing basis constitutes a breach of the Franchise Agreement. Kidokinetics retains the right to specify alternative payment methods for any fees due under the agreement.