What sales information must be included in the weekly Sales Report for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must submit a weekly Sales Report. This report, signed by the franchisee and in a format specified by Kidokinetics, should contain sales information pertaining to the preceding week. This includes, without limitation, a summary of all monies received during that period.
Kidokinetics also requires any other additional information it deems necessary to properly evaluate the franchisee's progress. This broad requirement gives Kidokinetics significant discretion in determining what specific data points it wants to track and assess.
Furthermore, Kidokinetics has the right to inspect the Kidokinetics Business Location, equipment, and vehicles, and evaluate the operations of the Kidokinetics Business and the services rendered by the franchisee. Kidokinetics will also observe the franchisee and all employees in the performance of Kidokinetics Business services and contact and interview customers of the franchisee. This inspection will result in a report containing instruction for the efficient operation of the Kidokinetics Business, and the franchisee is obligated to implement operational changes as required by the report.