Must a Kidokinetics franchisee comply with then-current qualifications to renew?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| 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, a franchisee must comply with then-current qualifications and training requirements to renew their franchise agreement. The initial term of a Kidokinetics franchise is 10 years, and franchisees have the option to renew for one additional term of 10 years if they meet certain requirements.
To renew the franchise agreement, a franchisee must be in full compliance with the existing agreement, provide written notice within a specified timeframe, update machinery and equipment as needed, and satisfy all monetary obligations. Additionally, franchisees must execute the then-current form of the franchise agreement, which may contain materially different terms and conditions than the original agreement. They must also complete any additional training required by Kidokinetics at the time of renewal and pay a renewal fee, as well as execute a general release.
Failing to meet any of these renewal conditions gives Kidokinetics the right to refuse the renewal or extension of the franchise agreement. This means that Kidokinetics franchisees need to stay up-to-date with any changes to the franchise's standards, training, and qualifications to ensure they are eligible for renewal when the time comes. This also means that the terms of the franchise agreement could change upon renewal, so franchisees should carefully review the new agreement before signing.