Does the Kidokinetics franchise agreement specify how the 'materially different terms and conditions' in the renewal agreement will differ from the original?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| b. | Renewal or extension of the term | Article 4 | You may renew for one additional term of 10 years, subject to our renewal requirements. If you fail to meet any one of these conditions, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Article 4 | Be in full compliance, provide written notice to us at least 90 days, but not more than nine months, before the end of the term, update machinery, equipment, tools and vehicles as required, not be in default of any provision of the Franchise Agreement, satisfy all monetary obligations, execute our then-current form of franchise agreement (with materially different terms and conditions than your original Franchise Agreement), comply with then-current qualifications and training requirements, including completion of additional training, pay us a Renewal Fee, execute a general release. |
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 franchise agreement does not specify how the 'materially different terms and conditions' in the renewal agreement will differ from the original agreement.
The FDD states that to renew the franchise agreement for an additional term of 10 years, a franchisee must execute Kidokinetics' then-current form of franchise agreement, which may contain materially different terms and conditions than the original agreement. The franchisee must also be in full compliance, provide written notice within a specified timeframe, update machinery and equipment as required, not be in default, satisfy all monetary obligations, comply with current qualifications and training, pay a renewal fee, and execute a general release.
Because the FDD does not specify what these 'materially different terms and conditions' may be, prospective franchisees should inquire with Kidokinetics about what specific changes they can anticipate in a renewal agreement. Understanding these potential changes is crucial for making an informed decision about investing in a Kidokinetics franchise and planning for the future of their business.