Can Kidokinetics require an alternative payment method or frequency for fees owed?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics has the right to modify the payment method or frequency for any fees or amounts owed under the Franchise Agreement. Currently, Kidokinetics requires franchisees to make payments via electronic funds transfer (EFT) or similar electronic means, and franchisees must complete an ACH authorization form.

This provision grants Kidokinetics flexibility in managing its revenue collection processes. For a prospective franchisee, this means that the established payment methods and schedules could change during the term of the agreement. While currently set up for EFT, Kidokinetics could switch to requiring payments via check, credit card, or another electronic system.

Furthermore, the frequency of payments could also be altered. For example, if royalty fees are typically paid weekly, Kidokinetics could change this to bi-weekly or monthly. It is important for a potential franchisee to understand that these changes are possible and to factor in the potential administrative and financial adjustments that might be necessary if Kidokinetics exercises this right. Franchisees should maintain open communication with Kidokinetics to stay informed of any upcoming changes to payment methods or schedules.