If a Kidokinetics franchisee relocates, who bears the cost of relocation?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
7.3.2. shall remove, at Franchisee's sole cost and expense, any signs or other property from the original Kidokinetics Business Location which identified the original Kidokinetics Business Location as part of the System;
7.3.3. agrees that, during the transition to the new location, and at Franchisor's sole and absolute discretion: (i) the term of this Agreement will not be abated, and (ii) Franchisee remains liable to pay weekly Royalty and Brand Development Fund Contributions that equal the average amount paid by Franchisee during the four calendar quarters immediately preceding the date that operations cease or the shorter period that Franchisee had been in business at the original Kidokinetics Business Location, and the annual Technology Fee; and
7.3.4. Schedule 1 of this Agreement shall be amended to reflect the address of the new Kidokinetics Business Location.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with relocating their Kidokinetics business. Specifically, the franchisee must pay for the removal of any signs or property identifying the original location as part of the Kidokinetics system.
During the transition to the new location, the franchisee is still obligated to pay weekly royalty and Brand Development Fund contributions. These payments will equal the average amount paid during the four calendar quarters immediately preceding the relocation, or the period the franchisee operated at the original location if shorter. The franchisee also remains responsible for the annual Technology Fee during this transition period.
Furthermore, the FDD states that Schedule 1 of the Franchise Agreement will be updated to reflect the address of the new Kidokinetics Business Location. This administrative change ensures that the franchise agreement accurately reflects the current operational location of the business. The franchisee bears the costs associated with relocation.