In the Kidokinetics Approval of Requested Assignment, what is the role of the 'Owners'?
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 |
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| 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. |
| NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements herein contained, the parties hereto hereby covenant, promise, and agree as follows: |
| 1. Payment of Fees . In consideration for the Requested Assignment, Former Franchisee acknowledges and agrees to pay Franchisor the Transfer Fee, as required under the Franchise Agreement (" Franchisor's Assignment Fee "). |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the 'Owners' are the undersigned owners of the 'Former Franchisee'. In the context of the Approval of Requested Assignment, the Owners are parties to the agreement, along with Kidokinetics Franchise LLC (the Franchisor), the Former Franchisee, and the New Franchisee.
The document outlines a situation where the Former Franchisee desires to assign their Kidokinetics franchise to a New Franchisee, and the Franchisor approves this assignment under specific terms and conditions. The Owners, being the undersigned owners of the Former Franchisee, are required to be part of this agreement, indicating their involvement in the decision to transfer the franchise.
Their role is significant because the transfer of ownership involves not just the company (Former Franchisee) but also the individuals who own that company. This ensures that all parties with a vested interest in the franchise are in agreement with the transfer. The agreement stipulates that the New Franchisee must sign Kidokinetics' current form of franchise agreement, and the Former Franchisee must pay the Franchisor's Assignment Fee, highlighting the conditions under which the transfer is approved.