Does the Kidokinetics franchise agreement allow for arbitration or litigation to be conducted outside of Michigan?

According to the 2024 Kidokinetics Franchise Disclosure Document, the state of Michigan prohibits certain unfair provisions that are sometimes included in franchise documents. Specifically, if the Kidokinetics franchise documents contain a provision requiring that arbitration or litigation be conducted outside the State of Michigan, that provision is void and cannot be enforced against the franchisee.

However, the FDD clarifies that this prohibition does not prevent a Kidokinetics franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside of Michigan. This means that while the initial franchise agreement cannot mandate out-of-state arbitration or litigation, a franchisee can later agree to it if they choose.

For prospective Kidokinetics franchisees in Michigan, this provides some protection against being forced into distant or inconvenient legal proceedings. It ensures that the initial agreement cannot compel them to arbitrate or litigate outside of Michigan, while still allowing for the possibility of agreeing to such a location at the time a dispute arises.