factual

What payments is Kidokinetics authorized to withdraw from the franchisee's account?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

e in the operation of the Kidokinetics Business.

  • 5.8. Method of Payment. Franchisee will, together with the submission of the Gross Sales Report, pay to Franchisor each Wednesday, via an electronic funds transfer program ("EFT Program") the Royalty and the Brand Development Fund, as defined and more particularly described in Article 13, then due. Franchisee must deposit all revenues from the operation of Franchisee's Kidokinetics Business into one bank account within three days of receipt, including cash, checks, and credit card receipts. Before opening Franchisee's Kidokinetics Business, Franchisee must provide Franchisor with Franchisee's bank name, address and account number, a voided check from the bank account, and sign and give to Franchisor and Franchisee's bank, all documents, including Attachment "G" to this Agreement, necessary to effectuate the EFT Program and Franchisor's ability to withdraw funds from such bank account via electronic funds transfer. Franchisee will immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in account numbers. Franchisor reserves the right to require Franchisee to pay any fees due under this Agreement by such other means as Franchisor may specify from time to time. Franchisee's failure to allow electronic funds transfers on an ongoing basis is a breach of this Agreement.
  • 5.9. Consumer Price Index. All fees expressed as a fixed dollar amount in this Franchise Agreement are subject to adjustment based on changes to the Consumer Price Index in the United States. Franchisor may periodically review and increase these fees based on changes to the Consumer Price Index, but only if the increase to the Consumer Price Index is more than 5% higher than the corresponding Consumer Price Index in effect on: (a) the effective date of the Franchise Agreement (for the initial fee adjustments); or (b) the date Franchisor implemented the last fee adjustment (for subsequent fee adjustments). Franchisor will notify Franchisee of any CPI adjustment at least 60 days before the fee adjustment becomes effective. Franchisor will implement no more than one fee adjustment during any calendar year. Notwithstanding the foregoing, the fee adjustments in this Section shall not impact fees which we reserve the right to increase in higher amounts or to adjust more frequently, including but not limited to the Technology Fee.

6. TRAINING.

6.1. Initial Management Training Program. Franchisee, or if Franchisee is an entity, Franchisee's principals (defined as all holders of an ownership interest, office or directorship in Franchisee and of any entity directly or indirectly controlling Franchisee, and any other person or entity controlling, controlled by or under common control with Franchisee and hereinafter referred to collectively as "Principals") having management responsibility for the Kidokinetics Business and Franchisee's Manager (if different from the Principal) shall attend and complete, to Franchisor's sole and absolute satisfaction, Franchisor's next scheduled initial management training program ("Initial Management Training Program") unless the next scheduled Initial Management Training Program is scheduled within 15 days of the Effective Date of this Agreement in which event Franchisee will attend the next scheduled training program. The Initial Training Program pertains to operation of the Franchised Business. The Initial Management Training Program consists of a course conducted at Franchisor's headquarters, currently in Davie, Florida, or at a location within the vicinity of Franchisor's headquarters. Franchisor reserves the right to designate an alternate location for the Initial Management Training Program. If Franchisee is an entity, it must at all times during the term of this Agreement have a Principal and a Manager who have successfully completed the Initial Management Training Program to Franchisor's sole and complete satisfaction. Franchisee, Franchisee's Principals with management responsibility, and Franchisee's Manager may attend the Initial Management Training Program at no charge prior to opening the Kidokinetics Business ("Initial

  • Trainees").

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics is authorized to withdraw several payments from a franchisee's account via electronic funds transfer (EFT). These include the Royalty fee, which is a percentage of gross sales, and the Brand Development Fund contribution, both due each Wednesday. Additionally, Kidokinetics can withdraw the Technology Fee each month on a date they designate.

If a franchisee fails to make timely payments or submit required Gross Sales Reports, Kidokinetics can also withdraw a late fee of $25 per week for each overdue payment or report. Furthermore, any unpaid amounts due to Kidokinetics will accrue interest at a rate of 1.5% per month, or the highest rate permitted by law, which Kidokinetics is also authorized to withdraw.

In the event that a franchisee's electronic funds transfer is denied due to insufficient funds, Kidokinetics can withdraw an Insufficient Funds Fee of $50, or an amount equal to what the bank charges Kidokinetics, whichever is higher. The franchisee is obligated to maintain sufficient funds and immediately notify Kidokinetics of any changes to their banking relationship to ensure these electronic transfers can occur without issue. Failure to allow ongoing electronic funds transfers is considered a breach of the Franchise Agreement.

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.