What happens if a Kidokinetics franchisee fails to meet one of the renewal conditions?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
RELATIONSHIP
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| b. | Renewal or extension of the term | Article 4 | You may renew for one additional term of 10 years, subject to our renewal requirements. If you fail to meet any one of these conditions, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Article 4 | Be in full compliance, provide written notice to us at least 90 days, but not more than nine months, before the end of the term, update machinery, equipment, tools and vehicles as required, not be in default of any provision of the Franchise Agreement, satisfy all monetary obligations, execute our then-current form of franchise agreement (with materially different terms and conditions than your original Franchise Agreement), comply with then-current qualifications and training requirements, including completion of additional training, pay us a Renewal Fee, execute a general release. |
| d. | Termination by franchisee | None | Not applicable. You may not terminate the Franchise Agreement. (Subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the initial franchise term is 10 years, with an option to renew for one additional 10-year term. However, this renewal is contingent upon meeting specific requirements set by Kidokinetics.
The FDD clearly states that if a franchisee fails to meet even one of the renewal conditions, Kidokinetics reserves the right to refuse the renewal or extension of the Franchise Agreement. This means that franchisees must diligently adhere to all requirements to maintain their Kidokinetics franchise beyond the initial term.
The renewal requirements include being in full compliance with the Franchise Agreement, providing timely written notice of intent to renew, updating equipment as required, satisfying all monetary obligations, executing the then-current franchise agreement (which may have materially different terms), complying with current qualifications and training, and paying a renewal fee. Meeting these conditions is crucial for a Kidokinetics franchisee who wishes to continue operating under the brand after the initial 10-year term.