What are the consequences if a new manager of a Kidokinetics franchise does not complete the initial training program?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
be required. If you appoint a new principal owner or transfer ownership, or if you hire a new Manager, that person must attend and successfully complete our initial training program before assuming responsibility for the management of your Kidokinetics Business. If we conduct an inspection of your Kidokinetics Business and determine you are not operating in compliance with the Franchise Agreement, we may require that you or your operating principal, Manager, managers and other employees attend remedial training that addresses your operational deficiencies. You may also request that we provide additional training (either at corporate headquarters or at your Kidokinetics Business). You must pay us $500 per attendee per day for additional training, and you must pay for airfare, meals, transportation costs, lodging and incidental expenses for all of your training program attendees. If we determine that you are not operating your Kidokinetics Business in compliance with the Franchise Agreement or the Operations Manual, we may require that you or your principal owner, designated managers and other employees attend remedial training. If the training program is conducted at your Kidokinetics Business, you must reimburse us for the expenses we or our representatives incur in providing the training.
ITEM 12. TERRITORY
You and we will agree on your territory before you sign the Franchise Agreement. You will not receive an exclusive territory ("Territory").
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, if a franchisee appoints a new manager, that person must attend and successfully complete the initial training program before managing the Kidokinetics business. The FDD states that initial training is mandatory for the manager. All franchisees must complete initial training to Kidokinetics' satisfaction within 60 days of signing the Franchise Agreement.
If Kidokinetics determines that a franchisee is not operating in compliance with the Franchise Agreement or the Operations Manual, Kidokinetics may require that the franchisee, their principal owner, designated managers, and other employees attend remedial training. The franchisee is responsible for the costs associated with additional training, including $500 per attendee per day, plus airfare, meals, transportation, lodging, and incidental expenses. If the remedial training is conducted at the franchisee's Kidokinetics Business location, the franchisee must reimburse Kidokinetics for all expenses incurred in providing the training.
While the FDD states that a new manager must complete the initial training program, it does not explicitly state the consequences if the new manager does not complete the training program. It is implied that the manager would not be allowed to manage the Kidokinetics business until the training is completed. A prospective franchisee should clarify with Kidokinetics what the specific ramifications are if a new manager does not complete the initial training program to Kidokinetics' satisfaction.