In a Kidokinetics franchise transfer, must the franchisee and their family members comply with post-termination provisions?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.3.11.
Franchisee (and Franchisee's principals if Franchisee is a partnership, corporation or limited liability company), and the members of their respective families must comply with the post-termination provisions of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, a franchisee and their family members must comply with the post-termination provisions of the Franchise Agreement in the event of a transfer. This requirement ensures that certain obligations, such as non-disclosure and non-competition clauses, remain in effect even after the franchise changes ownership.
This means that even after a Kidokinetics franchise is sold or transferred, the original franchisee and their family are still bound by the terms that prevent them from disclosing confidential information or competing with the Kidokinetics system. These post-termination provisions are designed to protect Kidokinetics' business interests and maintain the integrity of the brand.
For a prospective franchisee, this condition highlights the importance of understanding the full scope of the Franchise Agreement, including the post-termination obligations. It is crucial to carefully review these provisions and seek legal counsel to fully grasp the implications for the franchisee and their family members, even after they are no longer directly involved in the Kidokinetics business.