Kickfurther Business Contract

Written by Melissa Pillion, updated November 14th, 2022

Here’s how to read and understand your contract, including the terms and requirements of which you should be aware of.

The contract outlines the terms of the Consignment Opportunity or “Co-Op.”

Co-Op Specific Details: The contract will detail the Kickfurther fee for each Co-Op, any inspection fees initially withheld for the Co-Op, any fees that may be owed for completing a Co-Op later than estimated, the funding price, option price, and revenue share price of the consignment inventory, and the estimated timeline for the Co-Op, which includes the sales reporting periods and report dates as well as any payment terms on the payments owed pursuant to those reports.

Update Requirement: For all Co-Ops, businesses are required to provide an update related to each Co-Op at least once a month so long as the Co-Op is not flagged and at least every other week should the Co-Op become flagged. 

Reporting requirements: Businesses are required to provide sales reporting covering all of the SKUs in the Co-Op on the schedule set forth in the consignment agreement and, if the Co-Op continues past the expected completion date, these reports shall continue on the same monthly schedule. 

Payment requirements: Businesses pay the Revenue Share Price, which can be found in the contract, for each piece of consignment inventory sold until the Co-Op completes. By paying this Revenue Share Price, businesses are not required to sell 100% of any SKU to complete their Co-Op.

Flag Triggers: A Co-Op will generally be marked as flagged if: (i) for any scheduled payment date, the business makes a payment that, when taken cumulatively with all other payments, is less than the sum of all previous estimated paybacks prior to such date plus 50% of the current estimated payback for such date, (ii) the business does not provide an update and/or an inventory report or payment for invoiced sales within one week of the expected date, or (iii) if the Co-

Op is not completed within fourteen days after the expected completion date.