In the Kidokinetics 'Approval of Requested Assignment', what is the Former Franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Approval of Requested Assignment ("Agreement") is entered into this day of, 20, between Kidokinetics Franchise LLC ("Franchisor"), a |
|---|
| Florida limited liability company, ("Former Franchisee"), the |
| Florida limited liability company, ("Former Franchisee"), the undersigned owners of Former Franchisee ("Owners") and, a |
| [a/an Formation State] [corporation/limited liability company]"_("New Franchisee"). |
| RECITALS |
| WHEREAS, Franchisor and Former Franchisee entered into that certain franchise agreement dated, 20 ("Former Franchise Agreement"), in which |
| Franchisor granted Former Franchisee the right to operate a Kidokinetics franchise located at ("Franchised Business"); and |
| WHEREAS, Former Franchisee desires to assign ("Requested Assignment") the Franchised Business to New Franchisee, New Franchisee desires to accept the Requested Assignment of the Franchised Business from Former Franchisee, and Franchisor desires to approve the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon the terms and conditions contained in this Agreement, including that New Franchisee sign Franchisor's current form of franchise agreement together with all exhibits and attachments thereto ("New Franchise Agreement"), contemporaneously herewith. |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Former Franchisee is defined as a Florida limited liability company. In the context of the 'Approval of Requested Assignment,' the Former Franchisee is the entity that originally entered into a franchise agreement with Kidokinetics and now desires to assign its rights and obligations to a New Franchisee.
This assignment process involves several steps and considerations. The Former Franchisee must obtain Kidokinetics's consent for the assignment, which includes paying a transfer fee. The Former Franchisee also agrees to assign all rights and delegate all duties related to the original franchise agreement to the New Franchisee, contingent upon the New Franchisee signing a new franchise agreement with Kidokinetics.
Upon completion of the assignment, the original franchise agreement with the Former Franchisee terminates, and all rights to operate the Kidokinetics franchise transfer to the New Franchisee. The Former Franchisee must also keep Kidokinetics informed of their current contact information for three years following the execution of the assignment agreement. This ensures that Kidokinetics can reach the Former Franchisee if any issues arise related to the prior operation of the franchise.