Can the day-to-day operation of a Kidokinetics Business be delegated to a Manager?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You or, if the franchisee is an entity, the majority shareholder or owner of the franchisee must devote personal full-time attention and best efforts to the management and operation of the Kidokinetics Business, or you may delegate the day-to-day operation of your Kidokinetics Business to a Manager ("Manager"). If the Franchisee is an entity and the owner(s) elect to hire a Manager, then a shareholder or owner of the franchisee must dedicate a minimum of 20 hours per month to the operation of the Kidokinetics Business. You and the Manager, if different from you, must successfully complete our initial training program and all other training courses we require. You may not appoint a Manager who is not you or a principal of the Franchisee, if an entity, without our approval. The Manager must devote his or her full time and best efforts to the job, cannot have an interest or business relationship with any of our competitors, and must meet our then-current standards for Managers before assuming the position. If you are a business entity, each owner must sign a Personal Guaranty. Spouses are required to sign a Personal Guaranty. The Personal Guaranty is attached to our Franchise Agreement as Attachment E.
Your Manager and all other managerial personnel who will have access to our proprietary and Confidential Information and training must sign our Non-Disclosure and Non-Compete Agreement, which is attached to our Franchise Agreement as Attachment F.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 39)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee can delegate the day-to-day operations of their Kidokinetics business to a manager. If the franchisee is an entity, and they choose to hire a manager, a shareholder or owner must dedicate a minimum of 20 hours per month to the business's operation. The manager must devote their full time and best efforts to the job and cannot have any business relationship with Kidokinetics's competitors.
The franchisee cannot appoint a manager without Kidokinetics's approval, and the manager must meet Kidokinetics's standards before assuming the position. Both the franchisee and the manager, if they are different people, must successfully complete Kidokinetics's initial training program and any other required training courses. The manager, along with other managerial personnel who have access to proprietary and confidential information, must sign a Non-Disclosure and Non-Compete Agreement.
If a new manager is hired, they must attend and successfully complete the initial training program before taking on management responsibilities. While Kidokinetics does not charge for the initial training program, the franchisee is responsible for covering all travel and living expenses for themselves and any attendees. However, Kidokinetics may charge fees for additional training of a new manager. The franchisee is also obligated to train their own employees and other management personnel.