According to the Kidokinetics 'Approval of Requested Assignment', what is the role of the 'Owners'?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Approval of Requested Assignment ("Agreement") is entered into this day of, 20, between Kidokinetics Franchise LLC ("Franchisor"), a |
|---|
| Florida limited liability company, ("Former Franchisee"), the |
| Florida limited liability company, ("Former Franchisee"), the undersigned owners of Former Franchisee ("Owners") and, a |
| [a/an Formation State] [corporation/limited liability company]"_("New Franchisee"). |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, in the context of the 'Approval of Requested Assignment,' the 'Owners' are the undersigned owners of the 'Former Franchisee'.
Specifically, when a 'Former Franchisee,' which is typically a limited liability company, seeks to assign its franchise to a 'New Franchisee,' the owners of the 'Former Franchisee' are required to be part of the agreement. This indicates that the owners have obligations related to the termination, expiration, or transfer of the Former Franchise Agreement. They must also comply with covenants that survive the agreement's termination.
In practical terms, this means that if you are an owner of a Kidokinetics franchise operating under a corporate entity and you decide to sell or transfer your franchise, you, as the owner, will be directly involved in the assignment agreement. You will need to ensure compliance with the terms of the original franchise agreement, even after the transfer is complete. This may include ongoing obligations or liabilities that extend beyond the transfer date. Prospective franchisees should carefully review the implications of these continuing obligations with legal counsel to understand their responsibilities fully.