Must all claims related to the Kidokinetics franchise agreement be conducted on an individual basis?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee further agrees that fulfillment of any and all of Franchisor's obligations written in the Franchise Agreement shall be Franchisor's sole responsibility and none of Franchisor's owners, officers, agents, representatives, nor any individuals associated with Franchisor shall be personally liable to Franchisee for any reason.
Nothing in this Franchise Agreement is intended, nor shall be deemed, to confer any rights or remedies upon any person or legal entity not a party to this Franchise Agreement; provided, however, that the additional insureds and the Indemnitees are intended third party beneficiaries under this Franchise Agreement with respect to indemnification obligations of Franchisee.
- 20.2. Successors.
This Agreement binds and inures to the benefit of the successors and assigns of Franchisor and is personally binding on and inures to the benefit of Franchisee (including the individuals executing this Agreement on behalf of an entity if Franchisee is an entity) and its or their respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision will not be construed to allow a transfer of any interest of Franchisee or Principals, if any, in this Agreement or the Kidokinetics Business Location, except in accordance with Article 15 hereof.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, the agreement outlines several conditions and responsibilities for both the franchisee and franchisor, but it does not explicitly state that all claims related to the franchise agreement must be conducted on an individual basis.
The document specifies that the agreement is binding on the successors and assigns of Kidokinetics and personally binding on the franchisee, including their heirs and successors. However, it restricts the franchisee from transferring any interest in the agreement or the Kidokinetics business without prior written approval from Kidokinetics. The FDD also states that fulfillment of any and all of Kidokinetics's obligations written in the Franchise Agreement shall be Kidokinetics's sole responsibility and none of Kidokinetics's owners, officers, agents, representatives, nor any individuals associated with Kidokinetics shall be personally liable to Franchisee for any reason.
Item 17 of the Kidokinetics FDD discusses dispute resolution, including choice of law, forum, and mandatory or permissive arbitration. Because the excerpts provided do not include Item 17, it is not possible to determine whether claims must be pursued individually. A prospective franchisee should carefully review Item 17 of the complete FDD and consult with a legal professional to fully understand their rights and obligations regarding dispute resolution and the possibility of class action waivers.