What happens if a Kidokinetics franchisee assists others in contesting the validity of the Intellectual Property?

According to the 2024 Kidokinetics Franchise Disclosure Document, a franchisee is prohibited from contesting the validity of Kidokinetics' or its licensor's interest in the intellectual property. Furthermore, the franchisee is not allowed to assist others in contesting the validity of Kidokinetics' or its licensor's interest in the intellectual property.

Kidokinetics emphasizes the importance of protecting its intellectual property, including trademarks and service marks, to maintain the System's high standards of quality, appearance, and service. The franchisee acknowledges that any unauthorized use of the intellectual property constitutes an infringement of Kidokinetics' or its licensor's rights and an event of default under the agreement.

This provision ensures that franchisees do not undermine the brand's intellectual property rights, which are crucial for maintaining uniformity and goodwill across the Kidokinetics system. A prospective franchisee should understand that any action contesting or assisting in contesting the intellectual property's validity could lead to a breach of the franchise agreement.