Who must approve merchandise offered by a Kidokinetics franchisee that uses the Kidokinetics marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
13.7.4 Any merchandise offered by Franchisee that utilizes the Marks, must be approved by Franchisor in writing prior to being sold by Franchisee and such approval may be granted or denied in Franchisor's sole and absolute discretion.
13.7.5 The license of the Marks granted to Franchisee hereunder is nonexclusive and Franchisor retains the right, among others, (i) to use the Marks itself in connection with selling products and services; (ii) to grant other licenses for the Marks; and (iii) to develop and establish other systems using the Marks, similar proprietary marks, or any other proprietary marks, and to grant licenses thereto without providing any rights therein to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, any merchandise offered by a franchisee that utilizes the Kidokinetics marks must be approved by Kidokinetics in writing before it is sold. This approval can be granted or denied at Kidokinetics's sole discretion.
This stipulation ensures that all merchandise bearing the Kidokinetics brand meets the franchisor's standards and protects the brand's image. It also allows Kidokinetics to control the quality and consistency of products associated with its name.
For a prospective franchisee, this means they cannot independently source or create branded merchandise without prior authorization. Failure to obtain approval could result in a breach of the franchise agreement. Franchisees should factor in the time and potential costs associated with seeking and obtaining approval for merchandise ideas. This requirement is fairly standard in franchising, as franchisors typically maintain tight control over their trademarks and brand representation.
Kidokinetics also retains the right to use the marks themselves for selling products and services, grant other licenses for the marks, and develop other systems using the marks without providing any rights to the franchisee. This highlights that the franchisee's license to use the Kidokinetics marks is non-exclusive.