If required, who chooses the bookkeeping service for a Kidokinetics franchisee?

According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is generally responsible for maintaining their own books and records according to Kidokinetics's specified accounting procedures. However, Kidokinetics retains the right to mandate that a franchisee hire an outside accounting or bookkeeping firm if Kidokinetics determines, in its sole discretion, that the franchisee is not maintaining records and accounts up to Kidokinetics's standards.

Furthermore, the FDD states that the franchisee is required to use the bookkeeping service that Kidokinetics chooses. This means that if Kidokinetics requires the franchisee to use an outside bookkeeping service, the franchisee does not have the option to select their own service provider but must use the one designated by Kidokinetics.

This requirement ensures that Kidokinetics can maintain a consistent standard of financial reporting across all its franchises and address any concerns about a franchisee's financial record-keeping practices. For a prospective franchisee, this means they should be prepared to potentially relinquish control over their bookkeeping to a service chosen by Kidokinetics and factor in the costs associated with such a service if required.