What is the Kidokinetics franchisee's obligation if the franchisor determines that substitution of different Marks will be beneficial to the System?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor reserves the right to substitute different Marks for use in identifying the System and the Kidokinetics Business if the current Marks no longer can be used by Franchisor, or if Franchisor, in its sole discretion, determines that substitution of different Marks will be beneficial to the System.
In such event, Franchisor will require Franchisee, at Franchisee's expense, to discontinue or modify Franchisee's use of any of the Marks or to use one or more additional or substitute Marks no later than 10 days after notification thereof.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics reserves the right to substitute different Marks (trade names, service marks, trademarks, logos, etc.) for use in identifying the System and the Kidokinetics Business. This substitution can occur if the current Marks can no longer be used or if Kidokinetics believes a substitution would benefit the System.
In the event of a substitution, Kidokinetics will require the franchisee to discontinue or modify their use of any of the Marks, or to use one or more additional or substitute Marks. The franchisee must comply with this requirement no later than 10 days after receiving notification from Kidokinetics. The franchisee is responsible for bearing the expenses associated with these changes.
This clause gives Kidokinetics significant control over its brand and image. While it allows Kidokinetics to adapt to changing market conditions or legal requirements, it also places the burden of adaptation costs on the franchisee. A prospective franchisee should consider these potential costs and the relatively short timeframe for compliance when evaluating the franchise opportunity.