What claims does the franchisee waive regarding the loss of association with Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
idence conclusively showing you did not disclose the Intellectual Property to the family member.
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- Covenants Reasonable. You acknowledge and agree that: (i) the terms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. YOU HEREBY WAIVE ANY RIGHT TO CHALLENGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.
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- Breach. You agree that failure to comply with this Agreement will cause substantial and irreparable damage to us and/or other Kidokinetics franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of this Agreement will entitle us to injunctive relief. You agree that we may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstandi
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, franchisees waive certain rights to challenge the terms of the franchise agreement. Specifically, the franchisee agrees that the terms of the agreement are reasonable in both time and geographic scope, and that they have sufficient resources and business experience to earn a living while adhering to the agreement.
This means a franchisee cannot later claim the agreement is overly broad, unreasonable, or unenforceable. This waiver is significant because it limits the franchisee's legal recourse if they later feel the agreement's terms are unfair or create undue hardship. For example, if a franchisee believes the non-compete clause is too restrictive, they have already agreed not to challenge it as unreasonable.
Additionally, the franchisee waives the right to claim damages if Kidokinetics obtains an injunction against them for violating the agreement. The franchisee's sole remedy in the event of such an injunction is to seek its dissolution. This means that even if the injunction is later found to be wrongfully issued, the franchisee has already agreed not to sue Kidokinetics for any financial losses they incurred as a result of the injunction. The agreement specifies that if a court requires a bond for the injunction, the bond amount will not exceed $1,000.
These waivers are common in franchise agreements, as franchisors seek to protect their brand and system. However, prospective franchisees should carefully consider the implications of these waivers and consult with an attorney to understand their rights and obligations before signing the agreement.