factual

In the event of a dispute, are Kidokinetics claims limited to the recovery of actual damages?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

IN NO EVENT WILL FRANCHISOR BE LIABLE FOR INCIDENTAL, SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF FRANCHISOR HAS PREVIOUSLY BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

IN ADDITION, FRANCHISOR SHALL HAVE NO LIABILITY FOR ANY ERRORS OR OMISSIONS IN ANY WAY RELATED TO WORK PERFORMED BY CONSULTANTS OR OTHER PROFESSIONALS USING SCHEDULING OR ANY CUSTOMIZED SOFTWARE, REGARDLESS OF ANY PERMISSION, APPROVAL OR

ACCEPTANCE OF ACCOUNTANTS OR OTHERS BY FRANCHISOR. FRANCHISOR SHALL ALSO HAVE NO LIABILITY FOR INADVERTENT INTERRUPTION, DISABLING, OR UPDATE OF THE PROPRIETARY SOFTWARE.

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics is not liable for incidental, special, indirect, or consequential damages, including lost profits, even if they have been advised of the possibility of such damages. This limitation of liability is a risk factor for franchisees, as it restricts the type of damages they can recover from Kidokinetics in a dispute.

This means that if a franchisee suffers losses beyond direct costs due to Kidokinetics's actions or omissions, such as lost business opportunities or indirect financial harm, they may not be able to recover compensation for those losses. The FDD also states that Kidokinetics is not liable for errors or omissions related to work performed by consultants or other professionals using scheduling or customized software, regardless of any permission, approval, or acceptance by Kidokinetics. Additionally, Kidokinetics has no liability for inadvertent interruption, disabling, or update of the proprietary software.

Kidokinetics's stance on damages is relatively common in franchising. Franchise agreements often contain clauses that limit the franchisor's liability to protect them from potentially large and unpredictable claims. However, franchisees should carefully consider the implications of such limitations, as they can significantly affect their ability to recover losses in the event of a dispute. Prospective franchisees should seek legal counsel to fully understand the scope and impact of these limitations on their specific circumstances.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.