What days of the week does the Kidokinetics Gross Sales Report cover?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
5.5.1. Royalty. On Wednesday of each week (or such other date as we designate, you agree to pay us a royalty fee equal to eight percent (8%) of Gross Sales during the previous week (Monday through Sunday) ("Percentage Royalty"). At the end of the month, if the Percentage Royalty for that month is less than the minimum royalty in the chart below, you will pay us the difference ("Minimum Royalty") to meet your Minimum Royalty obligation. You will receive a 90-day grace period ("Grace Period"), beginning on the day you successfully complete the initial training class, before you are required to begin paying the Minimum Royalty, but the Percentage Royalty will be in effect immediately. The Minimum Royalty is as follows:
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Gross Sales Report covers sales from Monday through Sunday. This means that franchisees must track and report their sales data on a weekly basis, encompassing the entire week.
Kidokinetics franchisees are required to pay a royalty fee equal to 8% of gross sales from the previous week. This royalty payment is due every Wednesday, based on the sales figures reported in the Gross Sales Report. The franchisor has the right to change the date the royalty is due.
This weekly reporting and payment structure is fairly common in franchising, allowing Kidokinetics to maintain consistent cash flow and monitor franchisee performance closely. Franchisees should ensure they have systems in place to accurately track daily sales to facilitate accurate reporting and timely royalty payments.