What constitutes abandonment of the Kidokinetics Business, and what are the consequences?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.2.3. abandons the Kidokinetics Business for a period of five consecutive days or more, with the term "abandon" including any conduct which indicates a desire or intent to discontinue operating the Kidokinetics Business in accordance with the terms of this Agreement and will apply in any event if Franchisee fails to operate the Kidokinetics Business as a Kidokinetics Franchise LLC. business for a period of 5 or more consecutive days without Franchisor's prior written approval;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, abandonment of the Kidokinetics business occurs if the franchisee ceases operation for five or more consecutive days without prior written approval from Kidokinetics Franchise LLC. The term 'abandon' includes any conduct indicating a desire or intent to discontinue operating the Kidokinetics business according to the franchise agreement.
Other actions that can lead to termination of the franchise agreement include failing to open the Kidokinetics business as specified, falsifying reports, not complying with applicable laws, defaulting on leases, understating gross sales by 5% at any time or any amount on three or more occasions, unauthorized transfers, misrepresentation in the franchise application, or conviction of a felony that could damage the brand's goodwill.
Kidokinetics also has the option to cure the franchisee's defaults. They can either effect a cure on the franchisee's behalf at the franchisee's expense or take over the Kidokinetics business location and exercise complete authority over the business's operation until the default is cured. If Kidokinetics operates the business, the franchisee must pay Kidokinetics 10% of the gross sales generated during that period as compensation, in addition to all other fees.