Must a Kidokinetics franchisee comply with then-current training requirements 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 franchise term is 10 years, with an option to renew for one additional 10-year term if certain conditions are met.
To renew the Kidokinetics franchise, the franchisee must be in full compliance with the existing agreement, provide written notice within a specific timeframe (at least 90 days, but not more than nine months before the term ends), and update machinery, equipment, tools, and vehicles as required. They must also not be in default of any provision of the Franchise Agreement and satisfy all monetary obligations.
Furthermore, the franchisee needs to execute Kidokinetics's then-current form of franchise agreement, which may contain materially different terms and conditions from the original agreement. Compliance with then-current qualifications and training requirements, including completing additional training, is also mandatory. The franchisee must also pay a Renewal Fee and execute a general release to finalize the renewal process.
Failing to meet any of these renewal conditions gives Kidokinetics the right to refuse to renew or extend the terms of the Franchise Agreement. This underscores the importance of staying compliant and up-to-date with Kidokinetics's requirements to maintain the franchise.