What is the deadline for a Kidokinetics franchisee to furnish the Gross Sales Report each week?
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to pay a royalty fee equal to eight percent of gross sales each Wednesday. This royalty fee is based on the previous week's gross sales, which are calculated from Monday through Sunday. While the document specifies that the royalty payment is due on Wednesday, it does not explicitly state that the Gross Sales Report itself is also due on Wednesday.
However, the FDD states that the franchisee must provide Kidokinetics with a weekly Sales Report that contains sales information pertaining to the preceding week. This report must be signed by the franchisee and in the format that Kidokinetics specifies. The report should include a summary of all monies received during the relevant period, as well as any other additional information that Kidokinetics deems necessary to properly evaluate the franchisee's progress.
While the FDD specifies that the royalty payment is due on Wednesday, it does not explicitly state that the Gross Sales Report itself is also due on Wednesday. A prospective franchisee should clarify with Kidokinetics the exact deadline for submitting the Gross Sales Report to ensure compliance and avoid any potential penalties or issues.