Does the Kidokinetics franchise agreement state that the renewal fee will be the same as the initial franchise fee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| 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 renewal fee is not explicitly stated to be the same as the initial franchise fee. Item 17 outlines the renewal process, stating that a franchisee may renew for one additional term of 10 years, provided they meet certain requirements. These requirements include being in full compliance with the Franchise Agreement, providing timely written notice, updating equipment as required, satisfying all monetary obligations, and executing the then-current form of the franchise agreement, which may have materially different terms and conditions than the original agreement.
Furthermore, the franchisee must comply with then-current qualifications and training requirements, including completing additional training, paying Kidokinetics a renewal fee, and executing a general release. The specific amount of the renewal fee is not mentioned in relation to the initial franchise fee within this section.
Therefore, a prospective Kidokinetics franchisee should inquire about the specific amount of the renewal fee and how it is determined, as it is not explicitly stated to be the same as the initial franchise fee and is subject to change based on the 'then-current' form of the franchise agreement.