What happens to Kidokinetics Franchisor's duties and obligations upon assignment of the agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, if Kidokinetics assigns its rights in the Franchise Agreement, it is not required to remain in the youth fitness business or to offer or sell any products or services to the franchisee. This means that Kidokinetics can transfer its rights to another party, and that party would not necessarily have to continue operating a similar business or providing the same support to the franchisee.

This clause provides Kidokinetics with flexibility in the event of a sale, merger, or other change in ownership. However, it also introduces risk for the franchisee. If the agreement is assigned to a new entity with no experience in the youth fitness industry, the franchisee could suffer from lack of support and guidance.

Prospective franchisees should consider this provision carefully and evaluate the likelihood of Kidokinetics assigning the agreement to a third party. It would be prudent to inquire about Kidokinetics's long-term plans and the criteria it would use in selecting an assignee. Franchisees should also seek legal counsel to understand their rights and options in the event of an assignment.