Is a Kidokinetics franchisee entitled to compensation for expenses incurred due to Trade Dress Modifications?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee will accept, use and display any such Trade Dress Modifications as if they were a part of this Franchise Agreement at the time of execution.
- 8.5. No Liability/Waiver of Claims.
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's 2024 Franchise Disclosure Document, franchisees are not entitled to compensation for expenses, losses, or damages sustained as a result of Trade Dress Modifications. Kidokinetics, in its sole discretion, may change and modify identifying elements of the System, including new vehicle wraps, color schemes, and modified marks. The franchisee is expected to accept, use, and display these Trade Dress Modifications as if they were part of the original Franchise Agreement.
Kidokinetics explicitly states it will not be liable for any expenses, losses, or damages incurred by the franchisee due to these modifications. The franchisee also agrees not to initiate or participate in any legal proceedings against Kidokinetics or any third party, seeking compensation for such expenses, losses, or damages.
Furthermore, the franchisee expressly waives any claims, demands, or damages related to the 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 means a Kidokinetics franchisee bears the full financial responsibility for implementing any required Trade Dress Modifications without any recourse for compensation from Kidokinetics.