What is the Kidokinetics franchisee's responsibility regarding compliance with GAAP or IRS policies when using the KIDOLINK Software?

According to Kidokinetics's 2024 Franchise Disclosure Document, it is the franchisee's sole responsibility to comply with all legal requirements related to Generally Accepted Accounting Principles (GAAP) or Internal Revenue Service (IRS) policies and requirements. Kidokinetics provides the KIDOLINK Software to assist with maintaining books, records, and reports, but explicitly disclaims any guarantee that the software will produce records or reports that adhere to GAAP or IRS standards.

This means that while the KIDOLINK Software can help with managing financial data, franchisees must ensure that their financial reporting and practices meet all applicable legal and accounting standards. Kidokinetics franchisees should not rely solely on the software for compliance purposes.

To ensure compliance, a prospective Kidokinetics franchisee should consult with a qualified accountant or tax professional to establish appropriate accounting procedures and verify that all reports generated, whether by the KIDOLINK Software or other means, meet GAAP and IRS requirements. This is a critical step in managing the financial aspects of the franchise and avoiding potential legal or financial penalties.