What agreement grants the right to operate a Kidokinetics franchised business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
eby agree as follows:
AGREEMENT
- GRANT OF FRANCHISE. Franchisor hereby grants to Franchisee and Franchisee accepts, upon the terms and conditions herein contained, the license to operate a Kidokinetics franchise (the "Kidokinetics Business" or the "Franchised Business"), using only the Marks licensed hereunder, in strict conformity with the System, which may be changed, improved and further developed by Franchisor from time to time. This grant applies only to the territory which will be selected by Franchisee and approved by Franchisor, which is more particularly described in Section 2 herein and in Attachment "B" (the "Territory"). Franchisee understands and acknowledges that present or future franchisees of Franchisor may operate under different forms of franchise agreements and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially in certain circumstances.
KidokineTics
2. TERRITORY
- 2.1. Territory. This Agreement grants Franchisee the right to operate the Kidokinetics Business from a single location within a Territory ("Kidokinetics Business Location") described and/or mapped in Attachment "B" to this Agreement and incorporated into this Agreement. Except as otherwise provided for in this Agreement, as long as Franchisee is in compliance with the terms and conditions hereof, Franchisor agrees it will not operate, nor permit any other franchisee to operate, a Kidokinetics Business within the Territory using the same Marks. Franchisee acknowledges that other franchisees may operate their Kidokinetics Businesses from home offices located within the Territory, however, such Franchisee shall not be granted the right to operate within the Territory. Franchisee may not operate outside the Territory without express written authorization from Franchisor.
- 2.2. Reservation of Rights.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the agreement that grants the right to operate a Kidokinetics franchise is detailed within the franchise agreement itself. Specifically, the franchisor grants the franchisee a license to operate a Kidokinetics business, also referred to as the "Franchised Business," under the terms and conditions outlined in the agreement. This license permits the franchisee to use the Kidokinetics marks and system, provided they adhere strictly to the franchisor's standards, which may evolve over time. The grant is limited to a specific territory selected by the franchisee and approved by Kidokinetics, as described in the agreement and its attachments.
This agreement ensures that the franchisee has the right to operate within a defined territory, and Kidokinetics agrees not to operate or allow another franchisee to operate a Kidokinetics business within that territory, as long as the franchisee complies with the agreement's terms. However, other franchisees may operate home offices within the territory, but they are not granted the right to operate a Kidokinetics Business within the territory. The franchisee is also restricted from operating outside the designated territory without explicit written authorization from Kidokinetics.
It is important for prospective franchisees to understand that Kidokinetics retains certain rights, including the right to establish other franchised businesses outside the franchisee's territory, engage in other business ventures, and sell products or services through various channels, including online platforms. The agreement does not grant the franchisee the right to offer products or services via e-commerce or establish an independent website without prior approval from Kidokinetics. Franchisees should carefully review the agreement to fully understand the scope of their rights and the limitations imposed by Kidokinetics.