Can a Kidokinetics franchisee relocate their business without Franchisor consent?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee may not relocate the Kidokinetics Business without Franchisor's prior written consent, which shall not be unreasonably withheld.
In the event Franchisee elects to relocate the Kidokinetics Business to a new location, Franchisee may relocate the Kidokinetics Business, at Franchisee's sole expense, to a new location selected by Franchisee within the Territory.
In the event Franchisee wishes to relocate the Business, Franchisee:
7.3.1. must provide written notice of its intention to relocate to Franchisor at least 90 days prior to the date on which Franchisee elects to relocate;
7.3.2. shall remove, at Franchisee's sole cost and expense, any signs or other property from the original Kidokinetics Business Location which identified the original Kidokinetics Business Location as part of the System;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee cannot relocate their business without prior written consent from the franchisor. However, such consent will not be unreasonably withheld. If a Kidokinetics franchisee chooses to relocate within their designated territory, they are responsible for all associated expenses.
To initiate a relocation, the franchisee must provide Kidokinetics with written notice of their intention at least 90 days before the planned relocation date. Additionally, the franchisee is responsible for removing any signs or property that identify the original location as part of the Kidokinetics system. This ensures that the brand is properly represented and that customers are not misled by outdated signage.
This requirement protects Kidokinetics's brand consistency and ensures that relocations are conducted in a manner that does not negatively impact the system's reputation. By requiring prior notice and approval, Kidokinetics maintains control over the placement of its franchises and can ensure that the new location meets its standards. This also allows Kidokinetics to provide support and guidance during the relocation process, helping the franchisee to minimize disruption and maximize the potential for success in the new location.
For a prospective Kidokinetics franchisee, this means that while relocation is possible, it requires careful planning and adherence to the franchisor's guidelines. The franchisee should factor in the time and expense associated with obtaining approval and completing the relocation process. Understanding these requirements upfront can help a franchisee make informed decisions about the location of their business and plan for future growth.