If a prospective Kidokinetics franchisee answers 'No' to any question in the Franchise Disclosure Questionnaire, what are they required to do?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
As you know, Kidokinetics Franchise LLC ("we" or "us"), and you are preparing to enter into a Franchise Agreement for the operation of a Kidokinetics franchise. You cannot sign or date this questionnaire the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement. Please review each of the following questions carefully and provide honest responses to each question. If you answer "No" to any of the questions below, please explain your answer in the table provided below.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, prospective franchisees are required to complete a Franchise Disclosure Questionnaire. The questionnaire is not to be used for any franchise sale in or to residents of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. The document states that if a prospective franchisee answers "No" to any of the questions on the questionnaire, they must explain their answer in the table provided.
The Franchise Disclosure Questionnaire covers several topics, including the franchisee's understanding of the initial training program, statements or promises made by Kidokinetics employees, and the franchisee's understanding of the Franchise Agreement. The questionnaire also addresses the franchisee's understanding that Kidokinetics is relying on the answers provided to ensure the franchise sale complies with state and federal laws.
It is important to note that the franchisee cannot sign or date the questionnaire on the same day as the Receipt for the Franchise Disclosure Document, but they must sign and date it the same day they sign the Franchise Agreement. This suggests that the questionnaire is a crucial part of the due diligence process and is intended to ensure that the franchisee is fully informed before entering into the Franchise Agreement with Kidokinetics.