Can Kidokinetics grant other licenses for the Kidokinetics marks?

According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics retains the right to grant other licenses for its marks. Specifically, the franchise agreement grants the franchisee a nonexclusive license to use the Kidokinetics marks. This means that Kidokinetics reserves the right to use the marks themselves for selling products and services, grant licenses to others, and develop other systems using the marks or similar marks, without providing any rights to the franchisee in those other systems or licenses.

This has significant implications for a prospective Kidokinetics franchisee. While a franchisee is granted the right to operate a Kidokinetics business using the brand's intellectual property, they do not have exclusive rights to the Kidokinetics marks. Kidokinetics can license the marks to other franchisees or even use them directly in competition with existing franchisees. This could potentially lead to increased competition within the market, especially if Kidokinetics licenses the marks to businesses operating in the same geographic area or through similar channels.

Furthermore, Kidokinetics retains the right to develop and establish other systems using the Kidokinetics marks or similar proprietary marks and grant licenses to them without providing any rights to the franchisee. This means that Kidokinetics could create new business models or service offerings under the same or similar branding, and the franchisee would not automatically have the right to participate in or benefit from these new ventures. A potential franchisee should consider the possible impact of these factors on their business and investment before signing the franchise agreement.

In addition, Kidokinetics also has the right to sell and distribute, directly or indirectly, or license others to sell and distribute, directly or indirectly, any products, services or merchandise, from any location or to any purchaser, through any channel or method of distribution. This includes virtual classes, sales made by or through telemarketing, and/or on the Internet. This reservation of rights gives Kidokinetics broad latitude in how it chooses to expand the brand and generate revenue, which may or may not align with the interests of individual franchisees.