Is the Kidokinetics franchisee's aptitude a factor in the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 15.2. Restrictions on Transfers by Franchisee. Franchisee's rights and duties under this Agreement are personal to Franchisee and/or Franchisee's Principal(s), and Franchisor has made this Agreement in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee and/or Franchisee's Principals. Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval, which will not be unreasonably withheld. Franchisor may void any transfer made without such approval.
- 15.3. Transfers by Franchisee. Franchisee shall not directly or indirectly sell, assign, transfer, give, devise, convey or encumber this Agreement or any right or interest herein or hereunder (a "Transfer"), the Kidokinetics Business or any assets thereof (except in the ordinary course of business) or suffer or permit any such assignment, transfer, or encumbrance to occur by operation of law unless it first obtains the written consent of Franchisor, except as provided in Section 15.6 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee's aptitude is a factor in the agreement. Specifically, the agreement is made in reliance on the franchisor's perceptions of the franchisee's aptitude, among other qualities. This means Kidokinetics assesses a prospective franchisee's aptitude during the application process and considers it when deciding whether to grant a franchise.
This consideration extends to the transfer of the franchise. If a franchisee wishes to transfer their rights to another party, the proposed transferee must have sufficient business experience and aptitude to operate the Kidokinetics business and comply with the franchise agreement. Kidokinetics must approve the transfer, and they will assess the transferee's aptitude as part of their evaluation.
Kidokinetics also emphasizes the importance of competent service from employees. Franchisees are expected to ensure their employees maintain a neat appearance and provide competent and courteous service. Poorly trained employees or incompetent service can damage the goodwill of the Kidokinetics brand and constitute a default of the franchise agreement. This highlights the ongoing importance of aptitude and competence, not just during the initial assessment but throughout the operation of the franchise.