Does a Kidokinetics franchisee have to execute the then-current form of franchise agreement to renew?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
| 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 execute the then-current form of the franchise agreement to renew their franchise. The initial franchise term for Kidokinetics is 10 years, with an option to renew for one additional term of 10 years, provided certain conditions are met.
To renew the Kidokinetics franchise agreement, the franchisee must be in full compliance with the existing agreement, provide timely written notice of their intent to renew, update machinery and equipment as required, and satisfy all monetary obligations. Additionally, the franchisee must comply with the then-current qualifications and training requirements, which may include completing additional training, and pay a renewal fee.
It is important to note that the then-current form of the franchise agreement that a franchisee must execute may contain materially different terms and conditions than the original franchise agreement. The franchisee must also execute a general release to finalize the renewal. Failing to meet any of these conditions may result in Kidokinetics refusing to renew or extend the terms of the franchise agreement.