What happens to the Kidokinetics franchise agreement term if it is terminated as provided in the agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
may be exercised or taken at any time and from time to time. The expiration, earlier termination or exercise of Franchisor's rights pursuant to Article 16 do not discharge or release Franchisee or any Principal from any liability or obligation then accrued, or any liability or obligation continuing beyond, or arising out of, the expiration, the earlier termination or the exercise of such rights under this Agreement.
- 20.10. Counterparts. This Agreement may be executed in multiple counterparts, each of which when so executed are an original, and all of which shall constitute one and the same instrument.
- 20.11. Survival.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, the expiration, earlier termination, or exercise of the franchisor's rights does not discharge or release the franchisee or any principal from any liability or obligation then accrued. This also applies to any liability or obligation continuing beyond, or arising out of, the expiration, the earlier termination, or the exercise of such rights under the agreement.
Furthermore, any obligation of the franchisee or any principal that contemplates performance of such obligation after termination or expiration of the agreement or the transfer of any interest of the franchisee or any principal therein are deemed to survive such termination, expiration, or transfer. This means that certain responsibilities and duties outlined in the franchise agreement will continue even after the agreement has ended, regardless of the reason for termination or expiration.
In practical terms, a Kidokinetics franchisee should be aware that termination of the franchise agreement does not automatically absolve them of all responsibilities. Obligations such as maintaining confidentiality, non-compete clauses (if applicable), and settling outstanding financial debts may still apply. It is important for prospective franchisees to carefully review the specific terms of the franchise agreement to understand which obligations survive termination and for how long.