Does the agreement to first attempt internal resolution of disputes for Kidokinetics survive termination or expiration of the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.11. Survival.
Any obligation of Franchisee or any Principal that contemplates performance of such obligation after termination or expiration of this Agreement or the transfer of any interest of Franchisee or any Principal therein are deemed to survive such termination, expiration or transfer.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, certain obligations continue even after the termination or expiration of the Franchise Agreement. Specifically, any obligation of the franchisee or any principal that requires performance after the agreement ends is deemed to survive. This means that provisions like non-disclosure agreements, non-compete clauses, and any financial responsibilities can extend beyond the term of the franchise.
For a prospective Kidokinetics franchisee, this implies that their responsibilities do not necessarily end when the franchise agreement expires or is terminated. They need to be aware of which obligations continue and for how long. For example, the franchisee must comply with the non-disclosure and non-competition covenants contained in Article 18.
This survival clause protects Kidokinetics by ensuring franchisees uphold certain standards and obligations, even after they are no longer part of the franchise system. It is important for franchisees to fully understand these continuing obligations to avoid potential legal or financial repercussions after the agreement's end. Franchisees should seek legal counsel to clarify the extent and duration of these surviving obligations.