What must a Kidokinetics franchisee do regarding existing defaults under agreements before transferring the franchise?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee looking to transfer their franchise must address any existing defaults. Specifically, the franchisee is required to cure all existing defaults under the Franchise Agreement or any other agreement they have with Kidokinetics, its affiliates, or its designated suppliers and vendors. This cure must occur within the period allowed for such a cure. Furthermore, the franchisee must have substantially complied with all such agreements during their respective terms.

This requirement ensures that the Kidokinetics franchise system maintains its integrity and that the transferee is not burdened with unresolved issues from the previous franchisee. By requiring the franchisee to resolve all defaults, Kidokinetics aims to provide a clean slate for the new franchisee and protect its brand reputation.

For a prospective Kidokinetics franchisee, this means understanding all obligations under the franchise agreement and any related agreements. It is crucial to maintain compliance and address any defaults promptly to ensure a smooth transfer process if the franchisee decides to sell the business in the future. Failure to do so could delay or even prevent the transfer of the franchise.