What article of the Kidokinetics Franchise Agreement specifies the length of the franchise term?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
RELATIONSHIP
| 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 additional training, pay us a Renewal Fee, execute a general release. |
| d. | Termination by franchisee | None | Not applicable. You may not terminate the Franchise Agreement. (Subject to applicable state law). |
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, the length of the franchise term is specified in Article 3 of the Franchise Agreement. Article 3 states that the initial term for a Kidokinetics franchise is 10 years. This means a new franchisee will operate under the agreement for that duration before needing to consider renewal.
After the initial 10-year term, Article 4 allows the franchisee to renew for one additional term of 10 years. However, this renewal is contingent upon meeting Kidokinetics's renewal requirements. These requirements include being in full compliance with the agreement, providing timely written notice, updating equipment as needed, not being in default, satisfying all monetary obligations, and executing the then-current form of the franchise agreement, which may have materially different terms.
Additionally, to renew the Kidokinetics franchise, a franchisee must comply with current qualifications and training requirements, including completing additional training, paying a renewal fee, and executing a general release. Failure to meet any of these conditions gives Kidokinetics the right to refuse renewal or extension of the Franchise Agreement. This is a fairly standard renewal process in franchising, designed to ensure franchisees remain compliant and up-to-date with the brand's standards.