Is the Kidokinetics Franchisee required to pay all taxes and fees owed to any government?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
Franchisee agrees to pay all current obligations and liabilities to suppliers, lessors, and creditors on a timely basis.
Franchisee agrees to indemnify Franchisor in the event that Franchisor is held responsible for debts owed by Franchisee if Franchisor elects to pay any of Franchisee's obligations in order to preserve the relationship between any System suppliers and System franchisees.
Franchisee agrees to make prompt payment of all federal, state and local taxes, including individual and corporate taxes, sales and use taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes,
personal property and real estate taxes arising from Franchisee's operation of the Kidokinetics Business. Franchisee agrees to indemnify Franchisor in the event that Franchisor is held responsible for these taxes.
- 11.8. Telephone.
Franchisee shall comply with all federal, state and local laws, rules, regulations and ordinances and timely obtain any and all permits, certificates or licenses necessary for the full and proper conduct of the Kidokinetics Business.
Such laws, rules and regulations will include, without limitation, licenses to do business, fictitious name registrations, sales and other tax permits, any permits, certificates and/or licenses required by any federal, state or local law, rule or regulation and any other requirement, rule, law or regulation of any federal, state or local jurisdiction.
Franchisee shall pay all taxes and other fees owed to any federal, state and local government when due.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are responsible for paying all taxes and fees owed to federal, state, and local governments. This includes making prompt payments for various 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 arising from the operation of the Kidokinetics business.
Kidokinetics franchisees must also indemnify the franchisor if Kidokinetics is held responsible for any of the franchisee's tax obligations. This means the franchisee is obligated to protect Kidokinetics from any financial loss or liability resulting from the franchisee's failure to pay these taxes. This requirement ensures that the franchisee bears the full responsibility for their tax obligations and protects the franchisor from potential legal or financial repercussions.
In addition to tax obligations, Kidokinetics franchisees are required to comply with all federal, state, and local laws, rules, regulations, and ordinances necessary for the proper operation of the Kidokinetics business. This includes obtaining all necessary permits, certificates, and licenses, such as licenses to do business, fictitious name registrations, and sales and other tax permits. Failing to comply with these legal and regulatory requirements could result in penalties, legal action, or even the termination of the franchise agreement.