Does the Kidokinetics franchisor have the right to reduce the scope of any covenant in the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.7. Reduction of Time or Scope. If the period of time or the geographic scope specified above should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion of geographic scope, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable. In addition, Franchisor has the right, in its sole discretion, to reduce the scope of any covenant set forth in this Article 18 or any portion thereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice, and Franchisee agrees to immediately comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the franchisor does have the right to reduce the scope of any covenant within the agreement. Specifically, Kidokinetics retains the discretion to modify the scope of any covenant outlined in the agreement or any part of it.
This modification can be implemented without the franchisee's consent. The change becomes effective immediately once the franchisee receives written notice from Kidokinetics. The franchisee is then obligated to comply with the covenant as it has been modified.
This clause provides Kidokinetics with considerable flexibility to adjust the terms of the agreement as needed. For a prospective franchisee, this means that the covenants they initially agree to may be altered during the term of the agreement. It is important for franchisees to understand that they must comply with these changes promptly upon notification.