Where in the Kidokinetics Franchise Agreement is the ownership interest in the franchisee described?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the ownership interests in the franchisee are detailed in Attachment D of the Franchise Agreement. Specifically, section 10.2.6 of Item 22 states that an accurate and complete description of the ownership interests must be provided in this attachment. Furthermore, the franchisee is obligated to provide Kidokinetics with an updated list of all owners if there is any change in ownership. Kidokinetics also requires the franchisee to make a list of its owners available upon request at any time.
This requirement ensures that Kidokinetics is fully aware of who owns and controls each franchise location. This is a common practice in franchising, as the franchisor needs to know who they are partnering with and who is responsible for upholding the terms of the franchise agreement. By keeping an updated list of owners, Kidokinetics can maintain accurate records and ensure compliance with the agreement.
For a prospective Kidokinetics franchisee, this means that they must be transparent about the ownership structure of their business. Any changes in ownership must be promptly reported to Kidokinetics. This also implies that Kidokinetics has the right to request and review the ownership information at any time, so franchisees should maintain accurate and readily accessible records.