Is the Kidokinetics franchisee's business ability a factor in the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisee's business ability is a factor in the agreement. The document states that Kidokinetics has made the agreement in reliance on their perceptions of the franchisee's individual and collective character, skill, aptitude, attitude, business ability, and financial capacity.
This means that Kidokinetics assesses these qualities when deciding whether to grant a franchise. This assessment extends to the franchisee's principals as well. This indicates that Kidokinetics places significant importance on the franchisee's capabilities and suitability to manage and operate the franchise effectively.
Furthermore, the franchisee's rights and duties under the agreement are considered personal to the franchisee, meaning they cannot transfer the agreement without Kidokinetics's approval. Kidokinetics may void any transfer made without their approval. This is a fairly standard practice in franchising, as franchisors want to ensure that any new franchisee meets their standards and has the necessary skills to maintain the brand's reputation and operational standards.