What are the consequences if a Kidokinetics franchisee breaches obligations under Section 21.12 of the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
edia inquiry without prior approval from Franchisor;
- 16.2.21. breaches its obligations under Section 21.12; or
- 16.2.22. fails to meet the Minimum Performance Requirement.
- 16.3. Upon 5 Days' Notice to Cure. Franchisee will be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, if Franchisee fails to cure the default within the time period set forth in this Section 16.3, effective immediately upon notice to Franchisee, if Franchisee, or any Principal, as the case may be: fails to pay when due any amounts due to Franchisor under this Agreement or any related agreement and does not correct the failure within five calendar days after written notice;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee breaches their obligations under Section 21.12 of the franchise agreement, Kidokinetics may issue a 5-day notice to cure the breach. If the franchisee fails to cure the breach within this 5-day period, Kidokinetics has the option to terminate the agreement and all rights granted to the franchisee immediately upon providing notice.
This means that a Kidokinetics franchisee needs to be aware of the obligations outlined in Section 21.12 and take steps to ensure compliance. Failure to do so could result in the termination of their franchise agreement, leading to a loss of their business and investment. The short cure period of only 5 days emphasizes the importance of addressing any potential breaches promptly.
It is important for prospective franchisees to carefully review Section 21.12 of the Kidokinetics franchise agreement to fully understand their obligations and the potential consequences of non-compliance. This includes seeking legal counsel to clarify any ambiguities and to ensure they are prepared to meet all requirements of the agreement.