In the Kidokinetics franchise agreement, what information, besides the franchisee's signature, is required to be provided by the franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
wer and have been duly authorized by Franchisee;
- 10.2.5. Copies of Franchisee's organizational documents, other governing documents, resolutions or consents of the governing board authorizing entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity interests in Franchisee, and any other documents as may be reasonably required by Franchisor will be furnished to Franchisor prior to the execution of this Agreement;
- 10.2.6. The ownership interests in Franchisee are accurately and completely described on Attachment D of this Agreement. Upon the occurrence of any change of ownership, Franchisee will immediately provide Franchisor with a copy of the updated list of all owners of the entity. Franchisee will make a list of its owners available to Franchisor at any time upon request;
- 10.2.7. Franchisee and, at Franchisor's request, each Principal, has provided Franchisor with the most recent financial statements and tax returns of Franchisee and such Principal. Such financial statements and tax returns shall present fairly the financial position of Franchisee and each Principal, as applicable, at the dates indicated therein and, with respect to Franchisee, the results of its operations and its cash flow for the years then ended. Franchisee will, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement; and
- 10.2.8. Each Principal and each Principal's spouse will personally execute and bind himself or herself to the Guaranty and Confidentiality and Non-Compete Agreement, in the forms of Attachments E and F to this Agreement, respectively. Each shall jointly and severally guarantee Franchisee's performance of all of Franchisee's obligations, covenants and agreements under the Agreement, and otherwise bind themselves to the terms of this Agreement as stated herein, pursuant to the terms and conditions of the Guaranty and Confidentiality and Non-Compete Agreement.
- 10.3. Appointment of Manager.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees must provide several documents and pieces of information to Kidokinetics throughout the duration of the franchise agreement. Prior to the execution of the agreement, Kidokinetics requires copies of the franchisee's organizational documents, other governing documents, resolutions or consents of the governing board authorizing entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity interests in Franchisee, and any other documents as may be reasonably required by Franchisor. Attachment D of the agreement must accurately and completely describe ownership interests in the franchisee.
During the franchise term, franchisees must furnish Kidokinetics with updated lists of all owners of the entity immediately upon any change of ownership. Franchisees and, at Kidokinetics' request, each Principal, must provide Kidokinetics with the most recent financial statements and tax returns of Franchisee and such Principal. Franchisees must also promptly notify Kidokinetics and provide all related information if they develop any new concept, process or improvement in the performance of services, or in the operation or promotion of the Kidokinetics Business.
In the event of a transfer of the franchise, the franchisee must provide Kidokinetics all proposed transfer documents for review at least 30 days prior to closing. Additionally, the franchisee or transferee will provide Kidokinetics a copy of the executed purchase agreement relating to the proposed transfer with all supporting documents and schedules, including transferee's assumption of an agreement to faithfully perform all of Franchisee's obligations under this Agreement.