Does the Kidokinetics franchise agreement require franchisees to waive the right to challenge the agreement's terms as overly broad or unenforceable?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Covenants Reasonable. You acknowledge and agree that: (i) the terms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. YOU HEREBY WAIVE ANY RIGHT TO CHALLENGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, franchisees are required to waive their right to challenge the terms of the agreement. Specifically, the agreement states that franchisees acknowledge the terms are reasonable in both time and geographic scope. It also states that franchisees confirm they have sufficient resources and business experience to earn an adequate living while adhering to the agreement's terms.
By signing the Kidokinetics franchise agreement, a franchisee explicitly waives any right to later argue that the agreement's terms are overly broad, unreasonable, or unenforceable. This waiver is a significant legal commitment. It prevents franchisees from seeking legal recourse on the grounds that certain provisions, such as non-compete clauses or operational requirements, are unduly restrictive.
This type of waiver is not uncommon in franchise agreements. However, prospective Kidokinetics franchisees should carefully review all terms and conditions with legal counsel before signing. Understanding the full implications of this waiver is crucial, as it limits the franchisee's ability to challenge the agreement in the future, even if circumstances change.