According to the Kidokinetics agreement, which state's laws govern the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
nt and prevail against you, you agree to pay our reasonable attorney fees and costs in doing so.
- c. This Agreement will be governed by, construed, and enforced under the laws of Florida, and the courts in that state shall have jurisdiction over any legal proceedings arising out of this Agreement.
- d. Each section of this Agreement, including each subsection and portion, is severable. If any section, subsection, or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection, or portion; and each party to this Agreement agrees that the court may impose such limitations on the terms of this Agreement as it deems in its discretion necessary to make such terms enforceable.
| EXECUTED on the date stated below.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchise agreement is governed by Florida law. Specifically, the laws of Florida will be used to interpret and enforce the agreement. Furthermore, any legal proceedings related to the franchise agreement will take place in Florida courts.
This means that if there is a dispute between Kidokinetics and a franchisee, Florida law will apply, regardless of the franchisee's location. Franchisees may need to familiarize themselves with Florida law or seek legal counsel in Florida if a dispute arises. This could potentially add expenses for franchisees located outside of Florida, as they may need to travel to Florida for legal proceedings or hire Florida-based attorneys.
The FDD also states that each section of the agreement is severable. This means that if a court finds any part of the agreement to be unenforceable, the rest of the agreement will still remain in effect. This provides a level of protection for both Kidokinetics and the franchisee, as it prevents the entire agreement from being invalidated due to a single unenforceable clause.
Kidokinetics also states that if they pursue legal remedies against a franchisee for breach of contract and win, the franchisee is responsible for covering Kidokinetics's reasonable attorney fees and costs. This clause could create a significant financial risk for franchisees who violate the agreement, as they may be liable for substantial legal expenses in addition to other damages.