Does the Kidokinetics agreement waive rights to claims pertaining to restrictive covenants?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Covenants Reasonable. You acknowledge and agree that: (i) the terms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. YOU HEREBY WAIVE ANY RIGHT TO CHALLENGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees waive the right to challenge the terms of the agreement, including those related to restrictive covenants. Specifically, the agreement states that franchisees acknowledge the reasonableness of the agreement's terms regarding time and geographic scope.
Kidokinetics franchisees confirm they possess sufficient resources, business experience, and opportunities to earn a living while adhering to the agreement's terms. By agreeing to these terms, franchisees waive their right to challenge the agreement, asserting it is overly broad, unreasonable, or unenforceable.
This waiver has significant implications for prospective Kidokinetics franchisees. It means they are legally prevented from contesting the restrictive covenants outlined in the franchise agreement, which typically include non-compete clauses and confidentiality agreements. Therefore, it is crucial for potential franchisees to carefully review and understand these restrictions before signing the agreement, as they will be bound by them and unable to challenge their enforceability later on.