Can Kidokinetics assign its option to purchase the franchisee's assets to another party?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics has the right to assign its option to purchase a franchisee's assets to another party without needing the franchisee's consent. This option becomes relevant if the franchise agreement is terminated or expires.

This means that if a Kidokinetics franchise closes or the agreement ends, Kidokinetics can choose to sell its right to buy the franchisee's equipment, vehicles, signs, and other business-related items to someone else. The franchisee has no say in this assignment.

For a prospective Kidokinetics franchisee, this clause indicates that Kidokinetics retains significant control over the assets of a closed franchise. While the franchisee is entitled to the fair market value or cost (whichever is less) of the assets, Kidokinetics can transfer its purchase rights to a third party, potentially affecting the negotiation or sale process. Franchisees should be aware that they may be dealing with an unknown third party if Kidokinetics chooses to assign its purchase option.