What are the consequences if a Kidokinetics franchisee fails to maintain prescribed hours of operation?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.4. Upon 15 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 any of the following defaults remain uncured for 15 calendar days after written notice:
- 16.4.1.
Franchisee fails to immediately endorse and deliver to Franchisor any payments due to Franchisor from any third party that is erroneously made to Franchisee.
- 16.4.2.
Franchisee fails to maintain the prescribed months, days or hours of operation at the Kidokinetics Business.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee fails to maintain the prescribed months, days, or hours of operation, it constitutes a default under the Franchise Agreement. Kidokinetics will provide a 15-day written notice to cure this default. If the franchisee does not correct the issue within this 15-day period, Kidokinetics has the option to terminate the Franchise Agreement.
Maintaining the prescribed hours of operation is a standard requirement in many franchise systems to ensure consistent service and brand representation. Failure to adhere to these standards can disrupt customer expectations and negatively impact the overall reputation of the Kidokinetics brand.
This clause in the agreement protects Kidokinetics's interests by allowing them to address and correct operational inconsistencies that could harm the brand. For a prospective franchisee, this highlights the importance of understanding and adhering to the operational requirements set forth by Kidokinetics to avoid potential termination of the agreement.