What actions must a Kidokinetics franchisee complete prior to the Opening Date?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The date the Kidokinetics Business opens for business to the public is defined as the "Opening Date." Prior to the Opening Date, Franchisee will (i) complete all preparations for the Kidokinetics Business, including the purchase of all required supplies, equipment and vehicles, in accordance with System requirements, (ii) satisfactorily complete Franchisor's Initial Management Training Program, as further set forth in Article 7 above, and (iii) hire staff positions, as required by Franchisor.
If Franchisee fails to comply with any of such obligations, Franchisor will have the right to prohibit Franchisee from opening for business.
Franchisee's failure to open the Kidokinetics Business and commence business in accordance with this Section 7.2 will be deemed an event of default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, before a franchisee can open their Kidokinetics business to the public, which is defined as the "Opening Date," they must fulfill several key requirements. These include completing all necessary preparations for the business, such as purchasing all required supplies, equipment, and vehicles, ensuring that these purchases align with the standards and requirements of the Kidokinetics system.
In addition to procuring the necessary physical resources, the franchisee must also successfully complete the Franchisor's Initial Management Training Program. This training is crucial for understanding the Kidokinetics business model and operational procedures. Furthermore, the franchisee is responsible for hiring the necessary staff positions as mandated by Kidokinetics, ensuring that the business is adequately staffed to meet operational demands.
Kidokinetics emphasizes the importance of adhering to these pre-opening obligations, as failure to comply may result in the Franchisor prohibiting the franchisee from opening the business. Moreover, not meeting these requirements and failing to open the Kidokinetics business as scheduled is considered an event of default under the franchise agreement, highlighting the seriousness of these obligations.