Does the Kidokinetics FDD state that the provision regarding franchise questionnaires and acknowledgements supersedes other terms in documents related to the franchise?

According to Kidokinetics' 2024 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee regarding the commencement of the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Kidokinetics or its representatives. This specific provision takes precedence over any other term in any document related to the franchise. This means that even if other documents contain conflicting terms, the franchisee's right to pursue legal claims related to the franchise agreement remains protected.

This clause is included in the FDD as a condition of registration in certain states. However, Kidokinetics states that it does not agree with the language and believes that all provisions of the Franchise Agreement and Supplemental Agreements, including choice of law provisions, are fully enforceable. Kidokinetics intends to fully enforce all provisions of the Franchise Agreement, Supplemental Agreements, and all other documents signed, including venue, choice-of-law, arbitration provisions, and other dispute avoidance and resolution provisions, relying on federal pre-emption under the Federal Arbitration Act.

For a prospective Kidokinetics franchisee, this means that while certain acknowledgments or questionnaires might seem to limit their rights, this provision ensures that they retain the ability to pursue claims related to franchise law. However, it is important to note that Kidokinetics intends to enforce all provisions of the Franchise Agreement and Supplemental Agreements, including those related to dispute resolution, to the fullest extent possible.