What actions related to criminal convictions or harm to reputation can lead to termination of the Kidokinetics franchise agreement without opportunity to cure?

According to Kidokinetics's 2024 Franchise Disclosure Document, there are specific actions related to criminal convictions or harm to the reputation of the Kidokinetics system that can lead to the immediate termination of the franchise agreement, without an opportunity for the franchisee to correct the issue.

Specifically, if a Kidokinetics franchisee is convicted of, or pleads no contest to, a felony or any crime that could damage the goodwill associated with the Kidokinetics brand, the franchisor has grounds for immediate termination. Similarly, if the franchisee engages in any action that harms the reputation of the Kidokinetics system or the goodwill associated with its trademarks, this can also result in immediate termination.

These stipulations are important for prospective franchisees to consider, as they highlight the importance of maintaining a clean criminal record and upholding the reputation of the Kidokinetics brand. Any actions that could be perceived as damaging to the brand's image or goodwill could have severe consequences, including the loss of the franchise.