What is the definition of 'abandon' in the context of a Kidokinetics franchise?

According to Kidokinetics's 2024 Franchise Disclosure Document, abandoning the Kidokinetics business includes any action that indicates a desire or intent to discontinue operating the business according to the franchise agreement. Specifically, it refers to failing to operate the Kidokinetics business as a Kidokinetics Franchise LLC business for five or more consecutive days without the franchisor's prior written approval.

This definition is important for prospective franchisees because it clarifies the circumstances under which Kidokinetics can consider the franchise abandoned, which could lead to termination of the franchise agreement. The requirement for prior written approval for any period of non-operation lasting five or more days places a responsibility on the franchisee to communicate with Kidokinetics and seek permission for any planned or unplanned closures.

The inclusion of "any conduct which indicates a desire or intent to discontinue operating the Kidokinetics Business" broadens the definition beyond just physical closure. This means that even if the business is technically open, actions that suggest an intention to cease operations could be construed as abandonment. This clause gives Kidokinetics some latitude in interpreting a franchisee's actions.

For a prospective franchisee, it is crucial to understand these terms to avoid unintentional default. Maintaining open communication with Kidokinetics and adhering to the operational standards outlined in the franchise agreement and operations manual are essential to prevent any actions that could be interpreted as abandonment.