What form of release must be signed by both the franchisee and the transferee for Kidokinetics franchise transfer approval?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| 1 TOVISION | Agreement | Summary | |
| 1. | Franchisor approval | Sections 15.2, 15.3 and | You may not transfer your interest in any of the items |
| 1. | 15.4 | listed in (k) above without our prior written consent. | |
| of transfer by | 13.4 | ilsted iii (k) above without our prior written consent. | |
| franchisee | 0 1 150 1154 | ||
| m. | Sections 15.3 and 15.4 | Conditions include: transferee meets our then-current | |
| franchisor's approval | standards for qualifying franchisees; transferee signs | ||
| of transfer | our then-current form of Franchise Agreement, which | ||
| may have materially different terms from your | |||
| Franchise Agreement; transferee and its Manager | |||
| successfully complete our Initial Management Training | |||
| Program; you have paid us and third- party creditors all | |||
| amounts owed; you and the transferee sign a General | |||
| Release in the form of Attachment C to the Franchise | |||
| Agreement; you subordinate any claims you have | |||
| against the transferee to us; we have approved the | |||
| material terms and conditions of the transfer and you | |||
| provide us a copy of the purchase agreement; you cure | |||
| all existing defaults; and you have paid us a transfer | |||
| fee, plus any actual costs, including broker fees, if | |||
| applicable. We may withhold or condition our consent | |||
| to any transfer as we deem appropriate based on the | |||
| circumstances of the transfer or otherwise. |
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, for a franchise transfer to be approved, both the franchisee and the transferee must sign a General Release. This release must be in the form of Attachment C to the Franchise Agreement.
This requirement means that if a franchisee wants to sell their Kidokinetics franchise, both they and the buyer must agree to release Kidokinetics from any potential claims or liabilities related to the franchise agreement. Attachment C likely contains specific legal language outlining the scope of this release.
It is important for prospective Kidokinetics franchisees to carefully review Attachment C and understand the implications of signing a General Release. They should consult with a legal professional to ensure they are fully aware of their rights and obligations before proceeding with a transfer.