What is the franchisee required to provide to Kidokinetics in conjunction with the Electronic Funds Withdrawal Authorization?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Before opening Franchisee's Kidokinetics Business, Franchisee must provide Franchisor with Franchisee's bank name, address and account number, a voided check from the bank account, and sign and give to Franchisor and Franchisee's bank, all documents, including Attachment "G" to this Agreement, necessary to effectuate the EFT Program and Franchisor's ability to withdraw funds from such bank account via electronic funds transfer. Franchisee will immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in account numbers. Franchisor reserves the right to require Franchisee to pay any fees due under this Agreement by such other means as Franchisor may specify from time to time. Franchisee's failure to allow electronic funds transfers on an ongoing basis is a breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, before opening their Kidokinetics business, a franchisee must provide several items to facilitate the Electronic Funds Transfer (EFT) program. These include the franchisee's bank name, address, and account number. Additionally, the franchisee must supply a voided check from the designated bank account. Finally, the franchisee is required to sign and provide to both Kidokinetics and their bank all necessary documents, including Attachment "G" of the Franchise Agreement, to enable Kidokinetics to withdraw funds electronically from the franchisee's bank account.
This requirement ensures that Kidokinetics can collect royalties and Brand Development Fund contributions efficiently and consistently via electronic transfer. The franchisee's failure to comply with these EFT requirements is considered a breach of the Franchise Agreement, highlighting the importance of adhering to this payment method.
Franchisees should ensure they understand the terms outlined in Attachment "G" and maintain open communication with Kidokinetics regarding any changes to their banking relationship, such as account number modifications, to avoid any disruptions in the EFT process. This level of financial control is typical in franchising, allowing franchisors to maintain consistent revenue streams and manage brand development funds effectively.