What actions can Kidokinetics take if a franchisee fails to open the business as specified in Article 7?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that time is of the essence in this Agreement.
Subject to Franchisee's compliance with the conditions stated below, Franchisee shall open the Kidokinetics Business and commence business within 90 days after Franchisee has satisfactorily completed training.
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 the 2024 Kidokinetics Franchise Disclosure Document, a franchisee must open their Kidokinetics business within 90 days after completing training. Before opening, the franchisee must complete preparations, including purchasing required supplies, equipment, and vehicles, completing the initial management training program, and hiring staff. If the franchisee fails to meet these obligations, Kidokinetics has the right to prevent the franchisee from opening the business.
Furthermore, the FDD states that failure to open the Kidokinetics business as specified in Section 7.2 constitutes an event of default under the agreement.
Kidokinetics emphasizes that time is of the essence in the franchise agreement, highlighting the importance of adhering to the specified timelines for opening the business. This clause underscores the franchisor's commitment to ensuring that franchisees promptly establish and commence operations to maintain brand consistency and market presence.