How many instances of insufficient funds for checks or electronic transfers can result in termination of a Kidokinetics franchise agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee can have their franchise agreement terminated if they have insufficient funds to honor a check or electronic funds transfer three or more times within any consecutive 12-month period. This applies whether or not the defaults have been corrected.

This policy highlights the importance of maintaining sufficient funds in the designated bank account to cover all payments to Kidokinetics. Franchisees should ensure they have a system in place to monitor their account balances and avoid any overdrafts or rejected electronic transfers.

Missing payments due to insufficient funds can lead to a breach of the franchise agreement and potential termination, even if the franchisee later corrects the payment. This underscores the need for careful financial management and proactive communication with Kidokinetics if any payment issues arise.