What article of the Kidokinetics Franchise Agreement discusses renewal or extension of the term?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| b. | Renewal or extension of the term | Article 4 | You may renew for one additional term of 10 years, subject to our renewal requirements. If you fail to meet any one of these conditions, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Article 4 | Be in full compliance, provide written notice to us at least 90 days, but not more than nine months, before the end of the term, update machinery, equipment, tools and vehicles as required, not be in default of any provision of the Franchise Agreement, satisfy all monetary obligations, execute our then-current form of franchise agreement (with materially different terms and conditions than your original Franchise Agreement), comply with then-current qualifications and training requirements, including completion of additio |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Article 4 of the Franchise Agreement pertains to the renewal or extension of the franchise term. Specifically, a franchisee has the option to renew the agreement for one additional term of 10 years, contingent upon meeting Kidokinetics's renewal requirements.
To successfully renew their Kidokinetics franchise, a franchisee must be in full compliance with the existing agreement. They must also provide written notice to Kidokinetics within a specific timeframe: no less than 90 days, but also no more than nine months, before the current term expires. Furthermore, franchisees are expected to update their machinery, equipment, tools, and vehicles as required by Kidokinetics to meet current standards.
Additional conditions for renewal include satisfying all monetary obligations to Kidokinetics and not being in default of any provision within the Franchise Agreement. Franchisees must also execute the then-current form of the franchise agreement, which may contain materially different terms and conditions compared to the original agreement. Compliance with then-current qualifications and training requirements, potentially including additional training, is also necessary. Finally, franchisees must pay a Renewal Fee and execute a general release as part of the renewal process.