Are the franchisee's rights and duties under the Kidokinetics agreement personal?

According to Kidokinetics's 2024 Franchise Disclosure Document, the rights and duties of a franchisee under the Franchise Agreement are considered personal to the franchisee and/or their principals. Kidokinetics emphasizes that the agreement is made based on their assessment of the individual and collective character, skills, aptitude, attitude, business ability, and financial capacity of the franchisee and their principals. This indicates that Kidokinetics places significant importance on the personal attributes and capabilities of those who operate their franchises.

Because of this, any transfer of the agreement or any rights or interests associated with it requires prior written approval from Kidokinetics. This approval will not be unreasonably withheld if the franchisee has complied with the agreement. Kidokinetics retains the right to void any transfer made without their prior consent, ensuring they maintain control over who operates a Kidokinetics franchise.

For a prospective franchisee, this means that they cannot freely sell, assign, or transfer their franchise without Kidokinetics's permission. The potential transferee must meet Kidokinetics's standards for franchisees, including demonstrating good moral character. This restriction is common in franchising, as franchisors want to ensure that new franchisees are capable and suitable to maintain the brand's reputation and operational standards. It is important for franchisees to understand these transfer restrictions and the criteria for approval before entering into the agreement.