Does the Kidokinetics franchise agreement specify the exact content of the updated franchise agreement upon renewal?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| 1 TOVISION | Agreement | Summary | |
| 1. | Franchisor approval | Sections 15.2, 15.3 and | You may not transfer your interest in any of the items |
| 1. | 15.4 | listed in (k) above without our prior written consent. | |
| of transfer by | 13.4 | ilsted iii (k) above without our prior written consent. | |
| franchisee | 0 1 150 1154 | ||
| m. | Sections 15.3 and 15.4 | Conditions include: transferee meets our then-current | |
| franchisor's approval | standards for qualifying franchisees; transferee signs | ||
| of transfer | our then-current form of Franchise Agreement, which | ||
| may have materially different terms from your | |||
| Franchise Agreement; transferee and its Manager | |||
| successfully complete our Initial Management Training | |||
| Program; you have paid us and third- party creditors all | |||
| amounts owed; you and the transferee sign a General | |||
| Release in the form of Attachment C to the Franchise | |||
| Agreement; you subordinate any claims you have | |||
| against the transferee to us; we have approved the | |||
| material terms and conditions of the transfer and you | |||
| provide us a copy of the purchase agreement; you cure | |||
| all existing defaults; and you have paid us a transfer | |||
| fee, plus any actual costs, including broker fees, if | |||
| applicable. We may withhold or condition our consent | |||
| to any transfer as we deem appropriate based on the | |||
| circumstances of the transfer or otherwise. | |||
| n. | Franchisor's right of | Section 15.9 | You must promptly notify us of any written offer to |
| first refusal to acquire | purchase your Franchise. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the terms of the renewed franchise agreement are not fixed but will be based on the then-current form of the Franchise Agreement.
Specifically, when a franchisee seeks to transfer their franchise, the transferee is required to sign Kidokinetics's then-current form of Franchise Agreement. This agreement may contain terms that are materially different from the original Franchise Agreement.
This condition implies that the terms and conditions applicable at the time of renewal are subject to change, and the franchisee does not have a guarantee that the renewal agreement will mirror the original agreement. Prospective franchisees should be aware that the terms of the franchise agreement they sign initially may not be the same upon renewal or transfer, potentially affecting their rights and obligations.