Does the Kidokinetics agreement allow for any exceptions to the non-competition covenants?

According to Kidokinetics's 2024 Franchise Disclosure Document, the non-competition covenants can be waived if the franchisor provides written approval. Specifically, the agreement states that the franchisee and any principals covenant not to compete, "except as otherwise approved in writing by Franchisor." This means that a franchisee can request an exception to the non-compete restrictions, but Kidokinetics has the sole discretion to grant or deny such requests.

This clause provides Kidokinetics with flexibility in managing potential conflicts of interest and protecting its brand. For a prospective franchisee, this means that while non-compete obligations are generally in place, there is a possibility of negotiating exceptions under certain circumstances. However, approval is not guaranteed and depends on the franchisor's assessment of the situation.

It is important for potential franchisees to carefully consider the implications of the non-compete covenants and any potential need for exceptions before entering into the agreement. They should discuss any specific concerns or situations with Kidokinetics during the due diligence process to understand the likelihood of obtaining a waiver if needed. This can help avoid future conflicts and ensure that the franchise agreement aligns with their long-term business goals.