Is the Franchise Disclosure Questionnaire applicable for Kidokinetics franchise sales to residents of Virginia?

According to Kidokinetics's 2024 Franchise Disclosure Document, the Franchise Disclosure Questionnaire is not to be used for any franchise sale in or to residents of Virginia. This means that prospective Kidokinetics franchisees in Virginia will not be required to complete this questionnaire as part of the franchise sales process.

This exclusion may be due to specific state franchise laws or regulations in Virginia that render the questionnaire unnecessary or non-compliant. It is important for potential franchisees to understand which documents and procedures are applicable in their specific state to ensure compliance with all legal requirements.

While the questionnaire is not required, Virginia does have its own specific addenda and legal considerations. The FDD states that pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. The FDD also states that the franchisee will be required to make an estimated initial investment ranging from $110,500 and $144,700, which exceeds the franchisor's stockholders' equity as of December 31, 2023, which is ($1,596,773).

Prospective Kidokinetics franchisees in Virginia should carefully review the state-specific addenda and all other relevant documents to fully understand their rights and obligations under the franchise agreement.