Does the Kidokinetics franchisee's indemnification obligation continue after the expiration or termination of the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Any obligation of Franchisee or any Principal that contemplates performance of such obligation after termination or expiration of this Agreement or the transfer of any interest of Franchisee or any Principal therein are deemed to survive such termination, expiration or transfer.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, certain obligations of the franchisee, including potential indemnification responsibilities, do continue after the termination or expiration of the Franchise Agreement. Specifically, any obligation that requires performance even after the agreement ends is deemed to survive such termination or expiration. This means that even after the franchise agreement concludes, the franchisee may still be responsible for certain liabilities.
Kidokinetics franchisees agree to indemnify the franchisor in certain situations, such as if the franchisor is held responsible for the franchisee's debts or taxes. This indemnification obligation could extend beyond the term of the franchise agreement if the circumstances giving rise to the obligation occurred during the franchise term but the franchisor's responsibility arises later.
This survival clause is a standard provision in franchise agreements. Prospective Kidokinetics franchisees should carefully review the specific terms of the agreement to understand which obligations continue after termination and the potential scope and duration of those obligations. It is important to seek legal counsel to fully understand the implications of these clauses.