What is the first requirement for a Kidokinetics franchisee to renew or extend the franchise term?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| b. | Renewal or extension of the term | Article 4 | You may renew for one additional term of 10 years, subject to our renewal requirements. If you fail to meet any one of these conditions, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Article 4 | Be in full compliance, provide written notice to us at least 90 days, but not more than nine months, before the end of the term, update machinery, equipment, tools and vehicles as required, not be in default of any provision of the Franchise Agreement, satisfy all monetary obligations, execute our then-current form of franchise agreement (with materially different terms and conditions than your original Franchise Agreement), comply with then-current qualifications and training requirements, including completion of additional training, pay us a Renewal Fee, execute a general release. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the initial franchise term is 10 years, with an option to renew for one additional term of 10 years. However, this renewal is contingent upon meeting certain requirements set by Kidokinetics.
The first requirement for a Kidokinetics franchisee to renew or extend the franchise term is to be in full compliance with the existing Franchise Agreement. This means the franchisee must adhere to all operational standards, maintain the brand's reputation, and follow the guidelines outlined in the agreement.
If a franchisee fails to meet any of the renewal conditions, Kidokinetics has the right to refuse the renewal or extension of the Franchise Agreement. This underscores the importance of maintaining compliance and meeting all obligations throughout the initial term to secure the opportunity for an additional 10-year term with Kidokinetics.