In the Kidokinetics 'Approval of Requested Assignment', what is the New 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"). |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the 'New Franchisee' in the 'Approval of Requested Assignment' is defined as a corporation or limited liability company formed in a specific state. This definition is part of the agreement outlining the terms for transferring a Kidokinetics franchise from a 'Former Franchisee' to the 'New Franchisee'.
For a prospective franchisee, this means that if they are looking to acquire an existing Kidokinetics franchise through an assignment, they must establish a legal entity, either a corporation or an LLC, in a particular state. The specific state and type of entity must align with the requirements set forth in the assignment agreement. This ensures that the new owner of the franchise has a defined legal structure, which is a common practice in franchising to establish clear lines of responsibility and liability.
It is important to note that the exact state and the specific type of entity (corporation or LLC) are not specified in the excerpt but are to be filled in the agreement. A prospective franchisee should pay close attention to these details and ensure they meet all legal and contractual obligations when taking over a Kidokinetics franchise through an assignment.