Can Kidokinetics' approval of a supplier be withdrawn?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics has the right to withdraw its approval of a supplier. The FDD states that initial approval of a supplier does not guarantee indefinite approval.

Kidokinetics may withdraw approval based on several factors. These include the supplier's performance, changes in Kidokinetics' specifications, standards, or requirements, or for other reasons that Kidokinetics deems appropriate. This gives Kidokinetics considerable latitude in deciding whether to continue to approve a particular supplier.

This policy has important implications for franchisees. If a franchisee has come to rely on a particular supplier, Kidokinetics's decision to withdraw approval could disrupt the franchisee's operations. The franchisee would then need to find an alternative approved supplier, potentially on short notice. This could lead to increased costs or temporary supply shortages. Franchisees should therefore maintain flexibility in their supply chains and be prepared to adapt to changes in Kidokinetics' approved supplier list.