What documents is a franchisee allowed to retain copies of after delivering all materials related to the Kidokinetics business to the franchisor upon termination?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.1.6. immediately deliver to Franchisor the Franchise Operations Manual and all records, files, instructions, customer lists, correspondence, invoices, agreements and all other materials related to operation of the Kidokinetics Business (all of which are acknowledged to be Franchisor's property), and retain no copy or record of any of the foregoing, except Franchisee's copy of this Agreement and of any correspondence between the parties and any other documents that Franchisee reasonably needs for compliance with any provision of law;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee must deliver to Kidokinetics the Franchise Operations Manual, all records, files, instructions, customer lists, correspondence, invoices, agreements, and all other materials related to the operation of the Kidokinetics business. All these materials are acknowledged to be Kidokinetics's property.
However, the franchisee is permitted to retain copies of two specific types of documents. First, the franchisee can keep their copy of the franchise agreement itself. Second, they are allowed to retain copies of any correspondence between the franchisee and Kidokinetics.
Additionally, the franchisee may retain any other documents that the franchisee reasonably needs for compliance with any provision of law. This exception acknowledges that franchisees may need certain records to fulfill legal or regulatory obligations even after the franchise relationship has ended. It is important for prospective franchisees to understand these obligations upon termination.