Who is responsible for paying invoices for goods and services used in operating the Kidokinetics business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees to pay all current obligations and liabilities to suppliers, lessors, and creditors on a timely basis.
Franchisee agrees to indemnify Franchisor in the event that Franchisor is held responsible for debts owed by Franchisee if Franchisor elects to pay any of Franchisee's obligations in order to preserve the relationship between any System suppliers and System franchisees.
Franchisee agrees to make prompt payment of all federal, state and local taxes, including individual and corporate taxes, sales and use taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes,
personal property and real estate taxes arising from Franchisee's operation of the Kidokinetics Business. Franchisee agrees to indemnify Franchisor in the event that Franchisor is held responsible for these taxes.
- 11.8. Telephone.
Franchisee must obtain a new telephone number and telephone listing at Franchisee's expense, to be listed under the "Kidokinetics" name and not under Franchisee's corporate, partnership, or individual name, and to be used exclusively in connection with Franchisee's operation of the Kidokinetics Business.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee is responsible for paying all obligations related to operating the Kidokinetics business. This includes timely payments to suppliers, lessors, and creditors. The franchisee is also responsible for promptly paying all federal, state, and local taxes, including individual and corporate taxes, sales and use taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes, personal property, and real estate taxes.
This means that as a Kidokinetics franchisee, you must manage your finances carefully to ensure all bills and taxes are paid on time. Failure to do so could result in penalties, legal issues, and potential damage to your relationship with Kidokinetics and its suppliers. Additionally, the franchisee is responsible for obtaining and paying for a telephone number and listing under the "Kidokinetics" name, used exclusively for the Kidokinetics business.
Kidokinetics also requires the franchisee to indemnify the franchisor if Kidokinetics is held responsible for any debts or taxes owed by the franchisee. This protects Kidokinetics from financial liabilities arising from the franchisee's failure to meet their payment obligations. Therefore, maintaining sound financial practices is crucial for a Kidokinetics franchisee to avoid potential legal and financial repercussions and to maintain a positive standing with the franchisor and its network of suppliers.