Will Kidokinetics convert acquired facilities within the Territory to a Kidokinetics franchise?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics will not convert acquired facilities operating within a franchisee's territory into a Kidokinetics franchise. This means that if Kidokinetics acquires existing youth fitness facilities within a franchisee's designated territory, those facilities will not be converted to Kidokinetics franchises.

This policy protects the franchisee's exclusive territory. Kidokinetics franchisees are granted the right to operate their business from a single location within a defined territory. Kidokinetics agrees not to operate or allow another franchisee to operate a Kidokinetics business within that territory, so long as the franchisee remains in compliance with the franchise agreement. This territorial protection is a key element of the franchise agreement, ensuring that the franchisee has a defined market area to develop their business.

However, the franchisee acknowledges that other franchisees may operate their Kidokinetics businesses from home offices within the territory, but without the right to operate within the territory itself. Additionally, Kidokinetics retains significant rights, including the right to operate or franchise businesses offering similar products or services under different marks, and to sell products and services through various channels, including virtual classes and the internet. These retained rights allow Kidokinetics to adapt to changing market conditions and explore new business opportunities without being unduly restricted by the franchise agreement.