Does the Kidokinetics franchisor rely on the character of the franchisee when making the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 15.2. Restrictions on Transfers by Franchisee. 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.
- 15.3. Transfers by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor does consider the character of the franchisee when entering into an agreement. The agreement is based on the franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of the franchisee and/or the franchisee's principals. This indicates that Kidokinetics places significant importance on the personal and professional attributes of its franchisees.
Kidokinetics requires that any proposed transferee of a franchise must be an individual of good moral character, or if the transferee is a business entity, its principals must be of good moral character. They must also meet Kidokinetics's standards for franchisees at the time of the transfer. This requirement extends to transfers of ownership, ensuring that anyone taking over a Kidokinetics franchise meets the franchisor's standards for character and competence.
This emphasis on character suggests that Kidokinetics aims to maintain a consistent brand image and quality of service across all its franchise locations. By ensuring that franchisees and their principals possess good moral character and the necessary skills, Kidokinetics seeks to minimize risks associated with unethical or incompetent management, which could negatively impact the brand's reputation and customer experience. Prospective franchisees should be prepared to demonstrate their qualifications and commitment to upholding the standards set by Kidokinetics.