What happens to the Kidokinetics KIDOLINK Software license if the Franchise Agreement expires?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
C. TERMINATION
- (a) Term.
Except as otherwise expressly set forth below, the parties intend that the term of the license granted hereby will be coextensive with the term of the Franchise Agreement and all renewals and extensions thereof.
- (b) Automatic Termination.
The license granted hereby will terminate automatically upon the expiration, nonrenewal, or termination of the Franchise Agreement.
- (e) Disposition of Copies.
Upon termination of the license to use the KIDOLINK Software granted herein Franchisee agrees to promptly return to Franchisor, or otherwise dispose of as Franchisor may instruct, all physical copies of the KIDOLINK Software and its associated documentation in Franchisee's possession or under Franchisee's control and will remove all copies thereof from Franchisee's computers and other electronic storage media.
On Franchisor's request, Franchisee will provide Franchisor with written certification of its compliance with the foregoing.
- (f) No Refunds.
Upon the expiration or termination of the license granted hereby, or if the KIDOLINK Software is disabled as described above, Franchisee will not receive any refund of any payments made to Franchisor.
- (g) Ownership of Data.
Franchisee acknowledges and agrees that all data and information input and stored in the KIDOLINK Software is the sole and exclusive property of Franchisor and that such information is licensed to Franchisee for its use solely for the direct and customary operation of the Franchised Business and only during the term of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the license to use the KIDOLINK Software automatically terminates upon the expiration of the Franchise Agreement. The franchisee is then obligated to promptly return or dispose of all physical copies of the software and its documentation as instructed by Kidokinetics. Additionally, the franchisee must remove all copies of the software from their computers and other electronic storage media. Kidokinetics may request written certification from the franchisee confirming their compliance with these requirements.
Upon termination of the KIDOLINK software license, the franchisee will not receive any refund of payments made to Kidokinetics. All data and information input and stored in the KIDOLINK Software is the sole and exclusive property of Kidokinetics, and the franchisee is only licensed to use it during the term of the Franchise Agreement.
This means that a franchisee losing their franchise, whether through expiration, non-renewal, or termination, will immediately lose access to the KIDOLINK software and all the data within it. This could significantly impact their ability to manage their business if they do not have alternative systems in place. The franchisee should ensure they understand the implications of losing access to this software and consider how they would manage their business operations if the franchise agreement ends.