What agreements does the Kidokinetics franchise agreement supersede?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Termination of Rights to the Franchised Business. The parties acknowledge and agree that effective upon the date of this Agreement, the Former Franchise Agreement shall terminate and all of Former Franchisee's rights to operate the Franchised Business are terminated and that from the date of this Agreement only New Franchisee shall have the sole right to operate the Franchised Business under
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, in the event of a transfer of a franchise, the new franchise agreement will supersede the former franchise agreement. Specifically, upon the agreement date, the former franchise agreement terminates, and all rights of the former franchisee to operate the franchised business end. From that date forward, only the new franchisee has the right to operate under the new franchise agreement.
The former franchisee and their owners must still comply with any covenants in the former agreement that survive termination, expiration, or transfer. Unless state law prevents it, the former franchisee must also execute Kidokinetics' current form of General Release Agreement.
This ensures a clean break between the former franchisee and the Kidokinetics system, while protecting Kidokinetics' interests through continued adherence to surviving covenants and a general release. The new franchisee then operates under the current terms and conditions of the new franchise agreement.