Is failure to attend mandatory additional training by Franchisee, Franchisee's Principal and/or Manager an event of default of the Kidokinetics Agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, failure to attend mandatory additional training by the franchisee, franchisee's principal, and/or the manager is indeed considered an event of default under the Franchise Agreement. Furthermore, failure of the franchisee to attend Kidokinetics's national business meeting or annual convention also constitutes an event of default.

This stipulation means that Kidokinetics franchisees, their principals, and their managers must comply with all mandatory additional training requirements and attend the national business meeting or annual convention. Failure to do so can lead to serious consequences, including potential termination of the franchise agreement. Franchisees should carefully consider the time and financial commitments associated with these training and meeting requirements.

Kidokinetics may offer mandatory and/or optional additional training programs from time to time. If required by Kidokinetics, the franchisee, franchisee's principals (if any), and the manager must participate in refresher training for up to five days per year at a location designated by Kidokinetics. Franchisees are also responsible for all incidental expenses incurred in connection with additional training or attendance at the national business meeting or annual convention, including costs of travel, lodging, meals, and wages. Kidokinetics also reserves the right to charge its then-current additional training fee for any additional training provided, which is currently $500 per person per day of training.

This requirement is not uncommon in franchising, as franchisors often mandate training and meetings to ensure brand consistency, quality control, and ongoing education about new products, services, or operational procedures. However, prospective Kidokinetics franchisees should carefully evaluate these requirements and their associated costs to ensure they are willing and able to meet these obligations.