Does the Kidokinetics Franchise Agreement state that representations made outside of the Franchise Disclosure Document and Franchise Agreement are enforceable?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section In the Franchise or Other | Summary |
|---|---|---|
| M. U.S. et al. | Agreement | (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize our business or the business of any Kidokinetics franchisee; or (v) solicit business from customers your former Kidokinetics Business or contact any of our suppliers or vendors for any competitive business purpose. (Subject to applicable state law). |
| s. Modification of the agreement | Section 21.4 | The Franchise Agreement may not be modified except by a written agreement that both of us sign. |
| t. Integration/merger clause | Section 21.4 | Only the terms of the Franchise Agreement are binding (subject to applicable state law). Any representations or promises made outside the Franchise Disclosure Document and Franchise Agreement may not be enforceable. Notwithstanding the foregoing, nothing in any agreement is intended to disclaim the express representations made in this Franchise Disclosure Document, its exhibits and amendments. |
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 includes an integration/merger clause that affects the enforceability of representations made outside of the official documents. Specifically, only the terms within the Franchise Agreement are considered binding, subject to applicable state law. This means that any promises, assurances, or representations made outside of the Franchise Disclosure Document (FDD) and the Franchise Agreement itself may not be legally enforceable.
However, the clause also includes an important exception: the disclaimer does not apply to express representations made within the FDD, its exhibits, and amendments. Therefore, franchisees can rely on the information explicitly stated in the FDD and its associated documents.
This type of clause is common in franchise agreements to ensure clarity and prevent disputes based on verbal or informal promises. Prospective Kidokinetics franchisees should ensure that all important terms and conditions are clearly documented within the Franchise Agreement or the FDD to avoid potential issues regarding enforceability.