factual

What information regarding the franchisee's business is included in the Kidokinetics FDD contracts section?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

ing deemed guilty of trespass or any other tort;

  • 11.1.9. Conduct all advertising programs in a dignified manner that will not detract from the reputation of the System or the Marks;
  • 11.1.10. Submit all advertising, print materials (including, but not limited to, signs, brochures, websites, etc.), press releases, media packets and media information and any other information to be released for publication relating to the Kidokinetics Business, to Franchisor for written approval, prior to their being printed or published;
  • 11.1.11. Offer all and only such services as may from time to time be previously approved and required by Franchisor and only using the equipment approved by Franchisor;
  • 11.1.12. Devote Franchisee's full time, energy and best efforts to the efficient and effective management and operation of the Kidokinetics Business and avoid any activities that would conflict or interfere with or be detrimental to such purposes;
  • 11.1.13. Not use the Marks except as they relate to the System, and then only as previously approved by Franchisor in writing;
  • 11.1.14. Have at all times a Manager who has been properly trained as required herein;
  • 11.1.15. Operate Franchisee's Kidokinetics Business for at least those hours, days, and months that Franchisor specifies in the Franchise Operations Manual;

  • 11.1.16. At all times, maintain such working capital as may be reasonably necessary to enable Franchisee to properly and fully carry out and perform all of Franchisee's duties, obligations and responsibilities hereunder and to operate the Kidokinetics Business in a businesslike, proper and efficient manner; and
  • 11.1.17. Employ the number of staff and offer the services described in Schedule 1 to this Agreement.

11.2. Bookkeeping and Reports.

  • 11.2.1. Franchisee agrees to keep and maintain complete and accurate books and records of its transactions and business operations utilizing the accounting procedures specified by Franchisor. Franchisee agrees to: (i) purchase the computer systems in accordance with the requirements of this Agreement; and (ii) maintain the records and accounts of the Franchisee to the standards of the Franchisor. Franchisor reserves the right to require Franchisee hire an outside accounting or bookkeeping firm to maintain the records and accounts of the Franchisee should it find, in its sole discretion, that Franchisee is not maintaining the records and accounts in accordance with the standards of the Franchisor. Franchisee is required to use the bookkeeping service that Franchisor chooses.
  • 11.2.2. Franchisee must maintain, for at least five fiscal years from their preparation, complete financial records for the operation of the Kidokinetics Business in accordance with the then current Internal Revenue Service Publication and must provide Franchisor, at Franchisor's request, with: (i) a weekly Sales Report signed by Franchisee and in the form Franchisor specifies that contains the sales information pertaining to the preceding week including, without limitation, a summary of all monies received during the relevant period, any other additional information which Franchisor deems necessary to properly evaluate Franchisee's progress; (ii) a quarterly income statement and profit and loss statement, reflective of the three individual months in the quarter, in a format specified by Franchisor, including a standard chart of accounts, within 20 days after the end of each quarter; (iii) annual financial reports and operating statements in the form Franchisor specifies within 50 days after the close of each of Franchisee's fiscal years; (iv) state and local sales tax returns or reports and federal, state and local income tax returns for each year in which Franchisee's Kidokinetics Business is operated, within 30 days after their timely completion; and (v) such other reports as Franchisor may from time to time require, in the form and at the time Franchisor prescribes. Franchisee's fiscal year must be on a calendar year basis. To assist Franchisee in recording and keeping accurate and detailed financial records for reports and tax returns, Franchisor, at Franchisor's discretion, may specify the form in which the business records are to be maintained and provide a uniform set of business records for Franchisee to use. Franchisor will have full access to all of Franchisee's data, system, and related information by means of direct access, whether in person, or by telephone/modem installed and maintained at Franchisee's sole expense.
  • 11.2.3. The financial statements required hereunder are in such form and contain such information as Franchisor may from time to time reasonably designate.
  • 11.2.

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to the 2024 Kidokinetics Franchise Disclosure Document, the contracts section outlines several key aspects of the franchisee's business operations and responsibilities. It covers the franchisee's obligations regarding advertising, requiring them to conduct advertising programs in a dignified manner and to submit all advertising materials to Kidokinetics for written approval before publication. Franchisees must also offer only services approved by Kidokinetics, using only approved equipment. They are expected to devote their full time and energy to managing the Kidokinetics business and are restricted from using the Kidokinetics marks except as approved.

The contracts section also details operational requirements, such as maintaining a properly trained manager and operating the Kidokinetics business during specified hours, days, and months. Franchisees must maintain sufficient working capital to properly perform their duties and employ the staff and offer the services as described in the agreement. They are required to keep accurate books and records of their business transactions using Kidokinetics' specified accounting procedures. Franchisees must also participate in any system-wide computer network implemented by Kidokinetics and maintain adequate hardware and software to access the internet at the speed required by Kidokinetics.

Furthermore, the contracts section addresses the franchisee's online presence, stating that franchisees must read all electronic mail related to the Kidokinetics business daily and are restricted from establishing any unauthorized websites or internet listings. Kidokinetics maintains control over the official website, providing franchisees with a dedicated page subject to Kidokinetics' approval. Franchisees are also obligated to protect Kidokinetics' confidential information, including customer lists and supplier information, and must notify Kidokinetics of any potential breaches. They must also inform Kidokinetics of any actions or proceedings that could adversely affect their operation or financial condition and provide usernames and passwords for services used in the business, excluding online banking or financial accounts.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.