What documents relating to the proposed transfer must the Kidokinetics franchisee or transferee provide to the franchisor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
rchase the Franchise on such terms and conditions. Franchisee shall provide Franchisor all proposed transfer documents for Franchisor's review at least 30 days prior to a closing of the proposed Transfer;
- 15.3.8. If Franchisee or any Principal finances any part of the sale price of the Transfer, Franchisee or its Principal have agreed that all obligations of the transferee under any notes, agreements or security interests to Franchisee or its Principal will be subordinate to the transferee's obligations to Franchisor and subject to all limitations of Section 15.8 below;
- 15.3.9.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee looking to transfer their franchise must provide several documents to Kidokinetics. Specifically, the franchisee must provide all proposed transfer documents for Kidokinetics's review at least 30 days before the proposed transfer's closing.
Additionally, the franchisee or transferee must provide a copy of the executed purchase agreement related to the proposed transfer, including all supporting documents and schedules. This also includes the transferee's agreement to faithfully perform all of the franchisee's obligations under the existing Franchise Agreement.
Furthermore, if the franchisee or any principal finances any part of the sale price, they must agree that the transferee's obligations under any financial agreements are subordinate to the transferee's obligations to Kidokinetics. These requirements ensure that Kidokinetics has ample opportunity to assess the transfer and protect its interests, and that the new franchisee is fully aware of their obligations.