What is the cure period for non-payment defaults under the Kidokinetics Franchise Agreement?
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, a franchisee has five days to cure non-payment defaults. This means that if a franchisee fails to make a payment as required by the Franchise Agreement, Kidokinetics will provide a five-day period during which the franchisee can rectify the situation and avoid termination of the agreement.
This short cure period for non-payment defaults underscores the importance of maintaining timely payments to Kidokinetics. Franchisees should ensure they have sufficient financial resources and systems in place to meet their payment obligations promptly. Failing to do so could quickly lead to the termination of their franchise agreement.
In the franchise industry, cure periods can vary depending on the type of default and the franchisor. While some franchisors may offer longer cure periods, Kidokinetics's five-day period is relatively short, placing a significant responsibility on the franchisee to address any payment issues immediately.