Does the Kidokinetics franchise agreement specify how the 'then-current qualifications' for renewal are determined?
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, Article 4 outlines the requirements for renewal or extension of the franchise term. To renew for an additional term of 10 years, a franchisee must be in full compliance with the existing agreement, provide written notice within a specific timeframe, update equipment as required, avoid defaults, satisfy all monetary obligations, and execute the then-current franchise agreement, which may have materially different terms.
Additionally, the franchisee must comply with the then-current qualifications and training requirements, including completing additional training, pay a renewal fee, and execute a general release. However, the FDD does not specify the exact criteria that Kidokinetics uses to determine these 'then-current qualifications'.
Because the specific qualifications are not detailed in the FDD, it is important for a prospective Kidokinetics franchisee to ask the franchisor for a detailed explanation of what these qualifications entail. Understanding these requirements is crucial, as failure to meet them could result in Kidokinetics refusing to renew the franchise agreement.