What is the Kidokinetics franchisee's obligation regarding providing copies of organizational documents to the franchisor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
idokinetics Business Location and the Territory;
- 10.2.3. Franchisee's organizational documents will, at all times, provide that the activities of Franchisee are confined exclusively to the operation of the Franchised Business granted herein, unless otherwise consented to in writing by Franchisor, which consent may be withheld by Franchisor in Franchisor's sole discretion;
- 10.2.4. The execution of this Agreement and the consummation of the transactions contemplated in this Agreement are within Franchisee's power and have been duly authorized by Franchisee;
- 10.2.5. Copies of Franchisee's organizational documents, other governing documents, resolutions or consents of the governing board authorizing entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity interests in Franchisee, and any other documents as may be reasonably required by Franchisor will be furnished to Franchisor prior to the execution of this Agreement;
- 10.2.6. The ownership interests in Franchisee are accurately and completely described on Attachment D 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 must furnish copies of their organizational documents, other governing documents, resolutions or consents of the governing board authorizing entry into and performance of the Franchise Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity interests in Franchisee, and any other documents as may be reasonably required by Franchisor to Kidokinetics prior to the execution of the Franchise Agreement.
Furthermore, the franchisee's organizational documents must ensure that the franchisee's activities are confined exclusively to the operation of the Franchised Business granted in the agreement, unless Kidokinetics provides written consent otherwise, which Kidokinetics may withhold at its sole discretion. The franchisee must also accurately and completely describe the ownership interests in Attachment D of the Franchise Agreement.
Additionally, upon any change of ownership, the franchisee is obligated to immediately provide Kidokinetics with a copy of the updated list of all owners of the entity. The franchisee must also make a list of its owners available to Kidokinetics at any time upon request. These requirements ensure that Kidokinetics maintains current and accurate information about the franchisee's business structure and ownership.