Is a Kidokinetics franchisee responsible for determining whether to obtain financing or credit?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is solely responsible for: (i) selecting, retaining and paying Franchisee's employees; (ii) the payment of all invoices for the purchase of goods and services used in connection with operating the Kidokinetics Business; and (iii) determining whether, and on what terms, to obtain any financing or credit that Franchisee deems advisable or necessary for the conduct of the Kidokinetics Business.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is solely responsible for determining whether to obtain financing or credit for their Kidokinetics business. Specifically, the franchisee decides if financing or credit is advisable or necessary. The franchisee also determines the terms of any financing or credit they obtain.
This means that Kidokinetics does not provide guidance or assistance in securing financing. It is up to the franchisee to assess their financial needs and seek funding independently. This is a common arrangement in franchising, as franchisors typically do not want to be involved in the financial decisions of their franchisees.
Prospective Kidokinetics franchisees should carefully consider their financial situation and develop a solid business plan to determine their financing needs. They should also research different financing options and compare terms before making a decision. It is advisable to consult with a financial advisor to ensure they make informed choices about financing their Kidokinetics franchise.