Is a Kidokinetics franchisee required to comply with governmental laws and regulations?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.1.3. Comply with all applicable governmental laws, ordinances, rules and regulations, including prompt payment of taxes when due;
Franchisee shall pay all taxes and other fees owed to any federal, state and local government when due.
Franchisee agrees to comply with all applicable international, federal, state and local laws pertaining to the privacy of customer, employee, and transactional information ("Privacy Laws").
11.11. Pending Actions. Franchisee must notify Franchisor, in writing, within five days of the commencement of any action, suit or proceeding and the issuance of any order, suit or proceeding of any court, agency or other government instrumentality, including the receipt of any notice or citation, which may adversely affect the operation or financial condition of Franchisee or the Kidokinetics Business.
16.2.4. fails to comply with any federal, state or local law, rule or regulation, applicable to the operation of the Kidokinetics Business, including, but not limited to, the failure to pay taxes;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must comply with all applicable governmental laws, ordinances, rules, and regulations, including the prompt payment of taxes when due. This obligation extends to international, federal, state, and local laws pertaining to the privacy of customer, employee, and transactional information. Franchisees are expected to research and proactively ensure their Kidokinetics business complies with these Privacy Laws, which may vary by location.
Kidokinetics franchisees must also pay all taxes and other fees owed to any federal, state, and local government when due. Furthermore, franchisees are required to notify Kidokinetics in writing within five days of the commencement of any action, suit, or proceeding, including the receipt of any notice or citation, from any court, agency, or other government instrumentality that may adversely affect the operation or financial condition of the franchise.
Failure to comply with any federal, state, or local law, rule, or regulation applicable to the operation of the Kidokinetics business, including the failure to pay taxes, constitutes an event of default under the Franchise Agreement. This means that non-compliance can lead to penalties or termination of the franchise agreement. This requirement is standard in franchise agreements to ensure that all franchisees operate legally and ethically, protecting the brand's reputation and minimizing legal risks for both the franchisee and the franchisor.