What is Kidokinetics Franchisor's disclaimer regarding the KIDOLINK Software's compliance with accounting principles and IRS guidelines?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees, acknowledges and understands that use of the KIDOLINK Software is for the purposes of assisting Franchisee with maintenance of certain books, records and reports useful to Franchisee and which may be required pursuant to the Franchise Agreement between Franchisee and Franchisor.
The KIDOLINK Software is not intended, and Franchisor specifically disclaims any representation or warranty regarding use of the KIDOLINK Software, to produce records or reports that comply with generally accepted accounting principles ("GAAP") or Internal Revenue Service ("IRS") policies and guidelines.
It is Franchisee's sole responsibility to comply with any applicable requirements of law or otherwise relating to GAAP or IRS policies and requirements.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics disclaims any representation or warranty regarding the KIDOLINK Software's ability to produce records or reports that comply with generally accepted accounting principles (GAAP) or Internal Revenue Service (IRS) policies and guidelines. Kidokinetics states that the KIDOLINK Software is intended to assist franchisees with maintaining certain books, records, and reports that may be useful and required by the Franchise Agreement.
Kidokinetics emphasizes that it is the franchisee's sole responsibility to comply with all applicable legal requirements relating to GAAP or IRS policies and requirements. This means that while the KIDOLINK Software may aid in record-keeping, franchisees must ensure their accounting practices and reports meet all legal and regulatory standards.
This disclaimer is important for prospective Kidokinetics franchisees to understand, as it clarifies that they cannot rely solely on the KIDOLINK Software for ensuring compliance with accounting and tax regulations. Franchisees should consult with qualified accounting and tax professionals to ensure they meet all legal and regulatory requirements, as Kidokinetics will not be held liable for any non-compliance issues arising from the use of the KIDOLINK Software.