When must a Kidokinetics franchisee submit their contribution to the Cooperative for the preceding business week?

According to Kidokinetics's 2024 Franchise Disclosure Document, if a regional advertising and promotional cooperative is established and applicable to a franchisee's Kidokinetics business, the franchisee must submit their contribution to the Cooperative no later than Wednesday of each week for the preceding business week. This contribution, along with any required statements or reports, must be submitted as per the agreement terms and any additional requirements set by Kidokinetics or the Cooperative with Kidokinetics's approval.

This requirement ensures that the Cooperative receives timely contributions from all members, allowing it to effectively manage regional advertising programs and develop standardized advertising materials. The franchisee's contribution is credited towards their Local Marketing Requirement, as detailed in Section 12.2 of the franchise agreement. However, the Cooperative can, with a majority vote of its members, require contributions exceeding the Local Marketing Requirement.

Kidokinetics retains the right to designate geographical areas for establishing these cooperatives and determines their applicability to the franchisee's business. Franchisees should be aware that participation in a Cooperative is mandatory if one is established for their area. However, Kidokinetics may grant an exemption from Cooperative membership at its discretion, based on a written request from the franchisee explaining the reasons for the exemption.

Prospective Kidokinetics franchisees should inquire about the likelihood of a Cooperative being established in their area and understand the potential financial obligations and reporting requirements associated with Cooperative membership. They should also clarify the process for requesting an exemption from Cooperative membership and the criteria Kidokinetics uses to evaluate such requests.