What is the cure period for failing to maintain prescribed days and hours of operation for my Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section In the Franchise or Other Agreement | Summary |
|---|---|---|
| f. Termination by Franchisor with cause | Article 16 | We may terminate if you default for failure to comply with the obligations of the Franchise Agreement, or if you or an affiliate of yours defaults under any other agreement, including any other franchise agreement, with us or any of our affiliates, suppliers or landlord and do not cure the default within the time period provided in the other agreement. The Franchise Agreement describes defaults throughout. Please read it carefully. |
| g. "Cause" defined- | Sections 16.3 and 16.4 | You have five days to cure non-payments. You have 15 days to cure the following defaults: your failure to immediately endorse payments that are erroneously made to you; your failure to maintain prescribed days and hours of operations; your failure to personally supervise day-to-day operations; your failure to maintain the strict quality controls reasonably required by the Franchise Agreement and/or the Franchise Operations Manuals; and your failure to obtain or maintain any required licenses, certifications or permits. |
| curable defaults |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee fails to maintain the prescribed days and hours of operation, they have 15 days to cure this default. This means the franchisee must correct the issue within that timeframe to avoid further action from Kidokinetics, which could include termination of the franchise agreement.
This cure period is important because it gives the franchisee an opportunity to rectify the situation. It is fairly standard in franchising to provide a cure period for certain defaults, allowing franchisees a chance to correct operational issues. The 15-day period provides a reasonable window to adjust schedules, staffing, or other factors contributing to the failure to maintain the required operating hours.
It is important for a prospective Kidokinetics franchisee to understand all the conditions that could lead to a default and the corresponding cure periods. Failure to cure a default within the specified time can have serious consequences, including the loss of the franchise. Therefore, franchisees should carefully review the Franchise Agreement and Operations Manuals to ensure full compliance with all operational requirements.