Can the Kidokinetics Franchisor withhold consent regarding the activities of the Franchisee?
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
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor can withhold consent regarding certain activities of the franchisee. Specifically, Kidokinetics's consent may be withheld in its sole discretion regarding the franchisee's business activities. The franchisee's organizational documents must state that their activities are confined exclusively to operating the franchised business, unless Kidokinetics provides written consent otherwise.
Kidokinetics also requires written consent for franchisees to advertise or use the Kidokinetics marks on the Internet, through telecommunications, or by establishing any website listing. This consent may be withheld at Kidokinetics's sole discretion. Furthermore, franchisees must obtain written approval from Kidokinetics before using any advertising or promotional plans or materials and must discontinue using any such materials upon notice from Kidokinetics, regardless of whether they were previously approved.
These stipulations grant Kidokinetics significant control over the franchisee's operations and marketing efforts. A prospective franchisee should consider these restrictions and ensure they align with their business plans and expectations. It is important to discuss these consent requirements with Kidokinetics to fully understand the scope of activities that may require approval and the potential implications for the franchisee's business.