What happens if a Kidokinetics franchisee fails to meet any of the renewal conditions?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
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, if a franchisee fails to meet even one of the renewal conditions, Kidokinetics has the right to refuse the renewal or extension of the Franchise Agreement.
The renewal conditions that a franchisee must meet to be eligible for a renewal term include being in full compliance with the Franchise Agreement, providing timely written notice of intent to renew, updating machinery and equipment as required, not being in default of any provision of the Franchise Agreement, satisfying all monetary obligations, and executing Kidokinetics' then-current form of franchise agreement. This new agreement may contain materially different terms and conditions than the original agreement.
Additionally, the franchisee must comply with then-current qualifications and training requirements, including completing additional training, paying a renewal fee, and executing a general release. Meeting all of these requirements is crucial for a Kidokinetics franchisee who wishes to continue operating their franchise beyond the initial term, as failure to comply with any single condition gives Kidokinetics the discretion to deny the renewal.