What happens if a Kidokinetics franchisee fails to maintain strict quality controls?

personnel as Franchisor requires from time to time.

• 16.4.4. Franchisee fails to maintain the strict quality controls reasonably required by this Agreement and/or the Franchise Operations Manual.
• 16.4.5. Franchisee conducts itself in a manner that, although not criminal, reflects adversely on the System, the Marks, or the services offered through the System.

• 16.4.6. Franchisee fails to procure or maintain any licenses, certifications, or permits necessary for the operation of Franchisee's Kidokinetics Business.
• 16.5. Upon 30 Days' Notice to Cure. Franchisee shall be deemed to be in default and Franchisor has the right to terminate this Agreement if Franchisee fails to perform or comply with any one or more of the terms or conditions of this Agreement or any ancillary agreements between Franchisee and Franchisor or Franchisor's affiliates and fails to cure such default after notice and expiration of the thirty (30)-day cure period.
• 16.6. Franchisor's Cure of Franchisee's Defaults. In the event of a default by Franchisee, in addition to Franchisor's right to terminate the Franchise Agreement, Franchisor may, but has no obligation to:
  • 16.6.1. effect a cure on Franchisee's behalf and at Franchisee's expense, and Franchisee shall immediately pay Franchisor the costs incurred by Franchisor upon demand; or
  • 16.6.2. enter upon the Kidokinetics Business Location and exercise complete authority with respect to the operation of the Kidokinetics Business until such time as Franchisor determines that the default of Franchisee has been cured and that Franchisee is complying with the requirements of this Agreement. Franchisee specifically agrees that a designated representative of Franchisor may take over, control and operate the Kidokinetics Business. In addition to all other fees paid under this Agreement, Franchisee shall pay Franchisor ten (10%) percent of the Gross Sales generated by the Kidokinetics Business during Franchisor's operation of the Kidokinetics Business, as compensation. Further, Franchisee shall reimburse Franchisor for the full compensation paid to such representative including the cost of all fringe benefits plus all travel expenses, lodging, meals and other expenses reasonably incurred by such representative until the default has been cured and Franchisee is complying with the terms of this Agreement. Franchisee shall have a clause inserted in its lease for the premises that permits Franchisor to exercise its rights pursuant to this Section.
• 16.7 Nonwaiver. Franchisor's delay in exercising or failure to exercise any right or remedy under this Agreement, or Franchisor's acceptance of any late or partial payment due hereunder will not constitute a waiver of any of Franchisor's rights or remedies against Franchisee.

17. POST-TERMINATION

• 17.1.

Source: Item 22 — CONTRACTS (FDD page 59)