If Kidokinetics consents to a transfer, does this waive any claims Kidokinetics may have against the franchisee or the franchisee's principals?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics's consent to a transfer of the franchise does not waive any claims they may have against the franchisee or the franchisee's principals. This means that even if Kidokinetics approves the transfer of the franchise to a new owner, they still retain the right to pursue any existing claims against the original franchisee or their principals.

This provision protects Kidokinetics's interests by ensuring that they do not lose their legal recourse against the original franchisee simply by allowing a transfer. It also ensures that the new franchisee is not held responsible for the previous franchisee's liabilities, as those remain with the original franchisee.

For a prospective franchisee, this means that transferring the franchise does not absolve them of any outstanding obligations or potential liabilities to Kidokinetics. They remain responsible for any breaches of the franchise agreement or other claims Kidokinetics may have, even after the transfer is complete. It is important for franchisees to resolve any disputes or outstanding issues with Kidokinetics before initiating a transfer to avoid future legal complications.

In addition, the FDD states that Kidokinetics's approval of the transfer will not constitute a waiver of any claims Kidokinetics may have against the transferring party. This reinforces the idea that Kidokinetics retains all rights and remedies, even after a transfer. Franchisees should seek legal counsel to fully understand the implications of this provision before attempting to transfer their franchise.