Is a Kidokinetics franchisee allowed to commence litigation against the franchisor for expenses, losses, or damages related to changes in the Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor will not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any of the modifications, including Trade Dress Modifications, required by this Article 8.
Franchisee hereby covenants not to commence or join in any litigation or other proceeding against Franchisor or any third party, complaining of any such or seeking expenses, losses or damages caused thereby.
Further, Franchisee expressly waives any claims, demands or damages arising from or related to the modifications contemplated by this Article 8, including, without
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, franchisees are generally prohibited from commencing litigation against the franchisor for expenses, losses, or damages sustained as a result of modifications to the trade dress, including changes to the Marks.
Specifically, the FDD states that Kidokinetics will not be liable to the franchisee for any expenses, losses, or damages resulting from required modifications, including trade dress modifications. The franchisee agrees not to initiate or participate in any litigation against Kidokinetics or any third party, seeking expenses, losses, or damages caused by such modifications.
Furthermore, the franchisee expressly waives any claims, demands, or damages arising from or related to these modifications, including claims of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing. This clause is designed to protect Kidokinetics from legal challenges related to changes it makes to maintain and improve the brand's image and reputation.