On what schedule will Kidokinetics make withdrawals from the franchisee's account?
Kidokinetics Franchise · 2024 FDDAnswer 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to pay royalties and brand development fund contributions each Wednesday through an electronic funds transfer (EFT) program. Franchisees must deposit all revenues into a designated bank account within three days of receipt.
Prior to opening their Kidokinetics business, franchisees must provide the franchisor with their bank name, address, account number, and a voided check. They also need to sign and provide all necessary documents, including Attachment "G" of the agreement, to enable the EFT program. This allows Kidokinetics to withdraw funds from the franchisee's bank account electronically.
Franchisees are obligated to promptly inform Kidokinetics of any changes to their banking relationship, including account number changes. Kidokinetics retains the right to specify alternative payment methods for any fees due under the agreement. Failure to allow electronic funds transfers on an ongoing basis constitutes a breach of the franchise agreement.
In the event that Kidokinetics provides interim management support due to the franchisee's manager being unable to fulfill their duties, Kidokinetics may withdraw an Interim Management Fee from the franchisee's designated bank account. This fee is 10% of Gross Sales earned during the interim management period plus the subsequent three weeks, in addition to all regularly occurring fees, including Royalty and Brand Development Fund Contributions, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor.