What does the Kidokinetics franchise agreement cover under the section titled 'Maintenance and Improvement of the Franchised Business and System'?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
dress of the new Kidokinetics Business Location.
8. MAINTENANCE AND IMPROVEMENT OF THE FRANCHISED BUSINESS AND SYSTEM
- Franchise Operations Manual. Franchisor has created and developed special procedures, standards and 8.1. methods for operating and maintaining the Kidokinetics Business, which standards are incorporated into our Franchise Operations Manual. Franchisor will loan a copy of the Franchise Operations Manual to Franchisee. The Franchise Operations Manual and other documents are subject to modification from time to time as Franchisor determines, in its sole discretion. Franchisee agrees to operate the Kidokinetics Business in accordance with the Franchise Operations Manual. Franchisor will notify Franchisee of updates, revisions, modifications or amendments to the Franchise Operations Manual. Franchisee must comply with all updates, revisions, modifications or amendments to the Franchise Operations Manual no later than 30 days after notification at Franchisee's sole expense. The Franchise Operations Manual contains Franchisor's Trade Secrets and other Confidential Information and it shall be kept confidential by Franchisee during the term of the Franchise and subsequent to the expiration and non-renewal, termination, or transfer of this Agreement. Franchisee may provide the services Franchisor designates to all Accounts located within the Territory. The term "Accounts" means any and all schools, parks, community centers, summer camps, hotels, gyms, health centers and similar establishments that wish to contract for the services of a Kidokinetics Business where the site at which the services are to be provided is located within the Territory.
- 8.2. Maintenance of Kidokinetics Business. Franchisee will maintain the Kidokinetics Business and Kidokinetics Business Location to the standards of sanitation, repair and condition required by Franchisor, which standards are specified in the Franchise Operations Manual and other written directives, standards and specifications. Franchisee, at Franchisee's expense, will make such additions, alterations, repairs, refurbishing and replacements as may be required to comply with Franchisor's standards, including, without limitation, periodic repairs or replacement of worn or impaired supplies, equipment, vehicles and signage as Franchisor may direct. Franchisor reserves the right to require Franchisee to wrap the vehicle used in connection with the operation of the Franchised Business in accordance with Franchisor's designated specifications at Franchisee's sole cost and expense.
- 8.3. Equipment and Technology Updates. Franchisee shall make any and all upgrades to equipment, machinery, tools, including, but not limited to, QuickBooks Pro online or such other management software as Franchisor designates, and computer hardware (including an office computer, a tablet computer, a telephone, a fax machine, and a smartphone), software and applications, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.
- 8.4. Trade Dress Modifications. Franchisee is aware that, to maintain and improve the image and reputation of the System, Franchisor, in its sole and absolute discretion, may change and modify identifying elements of the System, including but not limited to, the adoption and use of new vehicle wraps, new color schemes, and new or modified marks (collectively, "Trade Dress Modifications"). Franchisee, upon notice by Franchisor, shall immediately discontinue the use of any Mark that is no longer available to Franchisor or that Franchisor has otherwise discontinued, and substitute a different Mark or Marks as Franchisor directs. Franchisee will accept, use and display any such Trade Dress Modifications as if they were a part of this Franchise Agreement at the time of execution.
- 8.5.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the franchise agreement outlines specific requirements for maintaining and improving the franchised business and system. This includes adherence to the Franchise Operations Manual, which contains special procedures, standards, and methods for operating and maintaining the Kidokinetics business. Kidokinetics will loan a copy of this manual to the franchisee, and it is subject to modifications at Kidokinetics' discretion. The franchisee must operate the business according to the manual and comply with any updates within 30 days of notification, at their own expense. The manual contains trade secrets and confidential information that must be kept confidential during and after the franchise term.
The agreement also stipulates that the franchisee must maintain the Kidokinetics business and location to the standards of sanitation, repair, and condition required by Kidokinetics, as detailed in the Franchise Operations Manual and other written directives. Franchisees are responsible for making necessary additions, alterations, repairs, refurbishing, and replacements to comply with Kidokinetics' standards, including periodic repairs or replacements of worn or impaired supplies, equipment, vehicles, and signage. Kidokinetics reserves the right to require franchisees to wrap their vehicles according to designated specifications, at the franchisee's expense.
Furthermore, franchisees are required to make upgrades to equipment, machinery, tools, and technology, including software and computer hardware, as required by Kidokinetics. Kidokinetics may also change and modify identifying elements of the system, such as vehicle wraps, color schemes, and marks, and franchisees must adapt to these "Trade Dress Modifications" to maintain and improve the image and reputation of the Kidokinetics system. These stipulations ensure uniformity and quality across all Kidokinetics franchises, protecting the brand's reputation and customer experience.