If Kidokinetics requires a franchisee to modify or discontinue using any Mark, what is the franchisee's obligation regarding compliance with Kidokinetics' directions?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
If it becomes advisable at any time, in our sole discretion, for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trademarks or service marks, you must comply with our directions within 30 days after receiving notice. We will not reimburse you for
your direct expenses of changing signage, for any loss of revenue or other indirect expenses due to any modified or discontinued Mark, or for your expenses of promoting a modified or substituted trademark or service mark.
Source: Item 13 — TRADEMARKS (FDD pages 36–38)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if Kidokinetics determines that it is advisable to modify or discontinue the use of any Mark, franchisees must comply with Kidokinetics' directions within 30 days of receiving notice.
This means that Kidokinetics has the right to change its branding, and franchisees are obligated to implement those changes promptly. This could involve updating signage, marketing materials, and other branded items to reflect the new Marks. Franchisees need to be aware of this obligation and be prepared to act quickly to maintain brand consistency.
However, Kidokinetics will not reimburse franchisees for any direct expenses incurred while changing signage, loss of revenue, or other indirect expenses resulting from the modified or discontinued Mark. Kidokinetics also will not cover expenses for promoting a modified or substituted trademark or service mark. This lack of reimbursement could pose a financial burden on franchisees, especially if the changes are extensive or frequent. Prospective franchisees should factor in these potential costs when evaluating the Kidokinetics franchise opportunity.