Does the Kidokinetics franchise agreement require the franchisee to pay taxes related to the operation of the Kidokinetics Business?

According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are responsible for the prompt payment of all taxes related to their Kidokinetics business. This includes federal, state, and local taxes such as individual and corporate taxes, sales and use taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes, personal property, and real estate taxes.

Kidokinetics franchisees also agree to protect the franchisor from any liabilities related to these taxes. Specifically, the franchisee must indemnify Kidokinetics if the franchisor is held responsible for any of the franchisee's tax obligations. This means the franchisee would have to reimburse Kidokinetics for any costs incurred if Kidokinetics has to pay the franchisee's taxes.

This requirement is standard in franchising, as each franchisee operates as an independent business owner. It is important for prospective Kidokinetics franchisees to understand their tax obligations and ensure they have a system in place for timely payment to avoid potential penalties and legal issues. Franchisees should consult with a tax professional to ensure compliance with all applicable tax laws and regulations.