Is completion of the Initial Management Training Program a condition for Kidokinetics franchisor approval of a transfer?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| 1 TOVISION | Agreement | Summary | |
| 1. | Franchisor approval | Sections 15.2, 15.3 and | You may not transfer your interest in any of the items |
| 1. | 15.4 | listed in (k) above without our prior written consent. | |
| of transfer by | 13.4 | ilsted iii (k) above without our prior written consent. | |
| franchisee | 0 1 150 1154 | ||
| m. | Sections 15.3 and 15.4 | Conditions include: transferee meets our then-current | |
| franchisor's approval | standards for qualifying franchisees; transferee signs | ||
| of transfer | our then-current form of Franchise Agreement, which | ||
| may have materially different terms from your | |||
| Franchise Agreement; transferee and its Manager | |||
| successfully complete our Initial Management Training | |||
| Program; you have paid us and third- party creditors all | |||
| amounts owed; you and the transferee sign a General | |||
| Release in the form of Attachment C to the Franchise | |||
| Agreement; you subordinate any claims you have | |||
| against the transferee to us; we have approved the | |||
| material terms and conditions of the transfer and you | |||
| provide us a copy of the purchase agreement; you cure | |||
| all existing defaults; and you have paid us a transfer | |||
| fee, plus any actual costs, including broker fees, if | |||
| applicable. We may withhold or condition our consent | |||
| to any transfer as we deem appropriate based on the | |||
| circumstances of the transfer or otherwise. |
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, completion of the Initial Management Training Program is a condition for franchisor approval of a transfer. The FDD states that the transferee and its Manager must successfully complete the Kidokinetics Initial Management Training Program as a condition for the franchisor's approval of the transfer.
This requirement means that if a franchisee wants to sell their Kidokinetics franchise, the person or entity buying the franchise (the transferee) and their designated manager must complete the training program to the satisfaction of Kidokinetics. This ensures that the new owner and manager are properly trained in the Kidokinetics system and meet the brand's standards.
In addition to completing the training program, there are several other conditions that must be met for Kidokinetics to approve a transfer. These include the transferee meeting the then-current standards for qualifying franchisees, signing the then-current form of Franchise Agreement, the franchisee paying all outstanding amounts owed to Kidokinetics and third-party creditors, and both the franchisee and transferee signing a General Release. The franchisor also has the right of first refusal to acquire the franchisee's business.