Following termination or expiration of the Kidokinetics franchise agreement, is a former franchisee allowed to identify themselves as a former Kidokinetics franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.1. Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee will immediately terminate and Franchisee and each Principal, if any, shall:
- 17.1.1. immediately cease to operate the Kidokinetics Business, and not, directly or indirectly, identify himself, herself or itself as a current or former Kidokinetics Business owner, franchisee or licensee;
- 17.1.2. immediately and permanently cease to use the Marks, any imitation of any Mark or other indicia of a Kidokinetics Business, or use any trade name, trade or service mark or other commercial symbol that suggests an association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, advertising materials, displays, vehicle wraps, stationery, forms and any other articles, which display the Marks;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a former franchisee is prohibited from identifying themselves as a former Kidokinetics franchisee after the termination or expiration of the franchise agreement. Specifically, the franchisee must immediately cease operating the Kidokinetics business and cannot directly or indirectly represent themselves as a current or former Kidokinetics business owner, franchisee, or licensee. This restriction is designed to protect the Kidokinetics brand and prevent any potential confusion or misrepresentation in the marketplace.
This provision is standard in franchise agreements to ensure brand consistency and prevent former franchisees from leveraging the brand's reputation for their own ventures after the agreement ends. Additionally, the former franchisee must immediately and permanently stop using the Kidokinetics marks, imitations of the marks, or any trade names or commercial symbols that suggest an association with Kidokinetics. This includes removing all signs, advertising materials, displays, and other articles that display the Kidokinetics marks.
In practical terms, this means that upon termination or expiration, a franchisee must take immediate steps to disassociate themselves completely from the Kidokinetics brand. This includes not only ceasing operations but also removing any indication that they were ever part of the Kidokinetics system. Failure to comply with these requirements could result in legal action from Kidokinetics to protect its brand and reputation.