Does the agreement to mediate survive any termination or expiration of the Kidokinetics Franchise Agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, any obligation of the franchisee or any principal that contemplates performance after the termination or expiration of the agreement is deemed to survive such termination or expiration. This means that certain responsibilities and duties outlined in the franchise agreement continue even after the agreement has ended, whether through its natural expiration or earlier termination.

For a prospective Kidokinetics franchisee, this survival clause has significant implications. It means that even after the franchise agreement ends, they may still be bound by certain obligations. These obligations could include, but are not limited to, non-compete agreements, confidentiality clauses, and payment obligations. Franchisees need to understand which specific obligations extend beyond the term of the agreement to avoid potential legal issues or financial liabilities after the franchise ends.

This is a fairly standard practice in franchising, as franchisors often need to protect their brand, trade secrets, and customer relationships even after a franchisee leaves the system. Franchisees should carefully review the franchise agreement and seek legal counsel to fully understand the scope and duration of any obligations that survive termination or expiration. Understanding these post-termination obligations is crucial for planning their future business activities and financial responsibilities.

While the FDD excerpt specifies that certain obligations survive termination or expiration, it does not explicitly detail which specific clauses or agreements are included. A prospective franchisee should clarify with Kidokinetics which specific obligations, such as mediation or arbitration agreements, survive the termination or expiration of the Franchise Agreement.