What happens if a Kidokinetics franchisee permits a transfer in violation of Article 15?

According to Kidokinetics' 2024 Franchise Disclosure Document, if a franchisee permits a transfer in violation of Article 15 of the Franchise Agreement, it constitutes a breach of the agreement. Specifically, section 16.2.7 states that permitting a transfer in violation of Article 15 is grounds for default.

Article 15 outlines the specific conditions and requirements for transferring ownership or rights related to the Kidokinetics franchise. These include obtaining the franchisor's written consent, ensuring the transferee meets certain qualifications, and fulfilling financial obligations. The franchisor retains the right to approve or deny a transfer based on these conditions.

Therefore, a Kidokinetics franchisee who violates Article 15 by transferring ownership without proper consent or failing to meet the specified requirements risks facing consequences outlined in the agreement, potentially including termination of the franchise agreement.