On whom is the Kidokinetics franchise agreement personally binding?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
cation obligations of Franchisee.
- 20.2. Successors. This Agreement binds and inures to the benefit of the successors and assigns of Franchisor and is personally binding on and inures to the benefit of Franchisee (including the individuals executing this Agreement on behalf of an entity if Franchisee is an entity) and its or their respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision will not be construed to allow a transfer of any interest of Franchisee or Principals, if any, in this Agreement or the Kidokinetics Business Location, except in accordance with Article 15 hereof.
- 20.3. Invalidity of Part of Agreement. Should any provisions in this Agreement, for any reason, be declared by a court of competent jurisdiction to be invalid, then such provision will be invalid only to the extent of the prohibition without in any way invalidating or altering any other provision of this Agreement.
- 20.4. Entire Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchise agreement is personally binding on the franchisee and, if the franchisee is an entity, on the individuals executing the agreement on behalf of the entity. Additionally, the agreement extends to the benefit of the franchisee's heirs, executors, administrators, and successors or assigns. However, this does not allow for unauthorized transfers of interest in the agreement or the Kidokinetics business location, except as outlined in Article 15 of the agreement.
Furthermore, each principal and their spouse must personally execute and adhere to the Guaranty and Confidentiality and Non-Compete Agreement. This means they jointly and individually guarantee the franchisee's performance of all obligations under the agreement. They also bind themselves to the terms outlined in the Guaranty and Confidentiality and Non-Compete Agreement.
This clause ensures that Kidokinetics can hold specific individuals accountable for the franchise's performance and adherence to the agreement's terms. It also protects Kidokinetics's interests by preventing unauthorized transfers and safeguarding confidential information. Prospective franchisees should carefully review Article 15 and attachments E and F to fully understand the implications of these personal obligations and restrictions on transfers.