Within how many days of receipt must a Kidokinetics franchisee deposit all revenues into their bank account?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to deposit all revenues from their Kidokinetics business into a designated bank account within three days of receipt. This includes all forms of revenue, such as cash, checks, and credit card receipts.
This requirement ensures that Kidokinetics franchisees maintain a consistent and reliable cash flow process. By mandating a three-day deposit window, Kidokinetics aims to streamline financial operations and facilitate accurate tracking of revenue. This also allows for timely royalty payments and contributions to the Brand Development Fund, which are essential for the continued growth and success of the Kidokinetics franchise system.
Furthermore, before opening their Kidokinetics business, franchisees must provide Kidokinetics with their bank name, address, account number, and a voided check. They must also sign and provide all necessary documents to enable electronic funds transfers, allowing Kidokinetics to withdraw funds from the franchisee's bank account. Franchisees are also obligated to immediately notify Kidokinetics of any changes to their banking relationship, including changes in account numbers. Failure to comply with these financial procedures is considered a breach of the Franchise Agreement.