Does the Kidokinetics franchisor reserve the right to vary performance standards for some franchisees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary contained in this Agreement, and this Section in particular, Franchisee acknowledges and agrees that, because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor specifically reserves the right and privilege, at its sole discretion and as it may be deemed in the best interests of all concerned in any specific instance, to vary performance standards for some franchisees based upon the peculiarities and characteristics of the particular site or circumstance, business potential, existing business practices or any other condition which Franchisor deems to be of importance to the successful operation of such particular franchise business.
Franchisor has full rights to vary standard specifications and practices for any other franchisee at any time without giving Franchisee comparable rights.
Franchisee will not be entitled to require Franchisor to disclose or grant to Franchisee a like or similar variation.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor retains the right to vary performance standards for individual franchisees under specific circumstances. Kidokinetics acknowledges that complete uniformity may not be practical due to varying conditions. Therefore, Kidokinetics reserves the right to adjust performance standards at its discretion, considering factors such as the site's peculiarities, business potential, existing business practices, or any other condition deemed important for the franchise's success.
This means that Kidokinetics franchisees may experience different performance expectations based on their specific location and circumstances. While this flexibility could be beneficial, allowing for tailored approaches to different markets, it also carries the risk of perceived unfairness or inconsistency among franchisees. One franchisee might face more lenient standards due to their location's challenges, while another could be held to stricter standards.
It is important to note that Kidokinetics has full rights to vary standard specifications and practices for any other franchisee at any time without giving comparable rights to other franchisees. Franchisees are not entitled to demand the same variations granted to others. This clause underscores the franchisor's control over performance standards and highlights the potential for unequal treatment among franchisees. Prospective franchisees should carefully consider this aspect and seek clarification from Kidokinetics regarding the criteria and process for varying performance standards.