If Kidokinetics pursues legal remedies against a franchisee for breach of the Franchise Agreement and prevails, who is responsible for paying Kidokinetics' reasonable attorneys' fees and costs?

According to Kidokinetics' 2024 Franchise Disclosure Document, if Kidokinetics pursues legal remedies against a franchisee for breaching the Franchise Agreement and wins, the franchisee is responsible for paying Kidokinetics' reasonable attorney fees and costs. This obligation is detailed within the franchise agreement.

This means that if a franchisee violates the terms of the agreement, such as by failing to meet quality standards, not complying with operational guidelines, or defaulting on payments, and Kidokinetics takes legal action and prevails in court, the franchisee will have to cover Kidokinetics' legal expenses. This could include fees for attorneys, court costs, and other related expenses incurred during the legal proceedings.

This provision serves as a deterrent against franchisees breaching the agreement, as it makes them financially responsible for the legal consequences of their actions. It also protects Kidokinetics by ensuring they can recover legal costs associated with enforcing the franchise agreement. Franchisees should be aware of this clause and understand the importance of adhering to the terms of the agreement to avoid potential legal action and the associated financial burden.