What is the deadline for a Kidokinetics franchisee to provide annual financial reports and operating statements?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2.2.
Franchisee must maintain, for at least five fiscal years from their preparation, complete financial records for the operation of the Kidokinetics Business in accordance with the then current Internal Revenue Service Publication and must provide Franchisor, at Franchisor's request, with: (i) a weekly Sales Report signed by Franchisee and in the form Franchisor specifies that contains the sales information pertaining to the preceding week including, without limitation, a summary of all monies received during the relevant period, any other additional information which Franchisor deems necessary to properly evaluate Franchisee's progress; (ii) a quarterly income statement and profit and loss statement, reflective of the three individual months in the quarter, in a format specified by Franchisor, including a standard chart of accounts, within 20 days after the end of each quarter; (iii) annual financial reports and operating statements in the form Franchisor specifies within 50 days after the close of each of Franchisee's fiscal years; (iv) state and local sales tax returns or reports and federal, state and local income tax returns for each year in which Franchisee's Kidokinetics Business is operated, within 30 days after their timely completion; and (v) such other reports as Franchisor may from time to time require, in the form and at the time Franchisor prescribes.
Franchisee's fiscal year must be on a calendar year basis.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must submit annual financial reports and operating statements to the franchisor within 50 days after the close of each of the franchisee's fiscal years. The financial reports must be in a format specified by Kidokinetics.
Kidokinetics also requires franchisees to maintain complete financial records for at least five fiscal years, adhering to the then-current Internal Revenue Service Publication standards. In addition to the annual reports, franchisees must provide Kidokinetics with a weekly sales report, a quarterly income statement and profit and loss statement within 20 days after the end of each quarter, and state and local sales tax returns or reports and federal, state and local income tax returns within 30 days after their timely completion.
Furthermore, the Kidokinetics Franchise Agreement stipulates that the franchisee's fiscal year must be on a calendar year basis. This means the franchisee's financial year aligns with the standard calendar year, beginning on January 1 and ending on December 31. Therefore, the annual financial reports and operating statements are due to Kidokinetics by February 19th of the following year, given the 50-day deadline.