What are the consequences if a Kidokinetics franchisee fails to open their business within the specified timeframe?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that time is of the essence in this Agreement.
Subject to Franchisee's compliance with the conditions stated below, Franchisee shall open the Kidokinetics Business and commence business within 90 days after Franchisee has satisfactorily completed training.
The date the Kidokinetics Business opens for business to the public is defined as the "Opening Date." Prior to the Opening Date, Franchisee will (i) complete all preparations for the Kidokinetics Business, including the purchase of all required supplies, equipment and vehicles, in accordance with System requirements, (ii) satisfactorily complete Franchisor's Initial Management Training Program, as further set forth in Article 7 above, and (iii) hire staff positions, as required by Franchisor.
If Franchisee fails to comply with any of such obligations, Franchisor will have the right to prohibit Franchisee from opening for business.
Franchisee's failure to open the Kidokinetics Business and commence business in accordance with this Section 7.2 will be deemed an event of default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must open their Kidokinetics business within 90 days after completing training. This timeframe is considered critical to the agreement.
Failure to open the Kidokinetics business within the specified 90-day period is considered an event of default under the Franchise Agreement. If the franchisee does not meet the obligations to prepare for opening, Kidokinetics has the right to prevent the franchisee from opening the business.
This default could lead to termination of the Franchise Agreement, meaning the franchisee would lose the right to operate under the Kidokinetics brand. Prospective franchisees should carefully consider their ability to meet this deadline, as failing to do so can have significant consequences.